News

Paltalk Inc. Announces Closing of $11.64 Million Public Offering and Full Exercise of Overallotment Option

SmallCaps Daily October 19, 2021

213 3 minutes read

Jericho, NY – (NewMediaWire) – October 19, 2021 – Paltalk,
Inc. (Nasdaq: PALT) (“Paltalk,” the “Company,” “we,” “our” or “us”), a leading
communications software innovator that powers multimedia social applications,
today announced the closing of its previously announced underwritten
public offering of 1,350,000 shares of its common stock at a public offering
price of $7.50 per share. In addition, Paltalk granted to Maxim Group LLC a
45-day option to purchase up to an additional 202,500 shares of common stock,
at the public offering price less underwriting discounts, of which Maxim Group
LLC has fully exercised its option to purchase such 202,500 shares of common
stock. Gross proceeds before deducting underwriting discounts, commissions and
other offering expenses are approximately $11.64 million, inclusive of the
over-allotment.

Maxim Group LLC acted as sole
book-running manager for the offering.

The public offering was made
pursuant to an effective shelf registration statement on Form S-3 (File No.
333-260063), previously filed with the U.S. Securities and Exchange Commission
(SEC) on October 5, 2021 and declared effective on October 14, 2021. The
securities were offered by means of a prospectus supplement and accompanying
prospectus, forming part of the registration statement. The prospectus
supplement and accompanying prospectus relating to this offering have been
filed with the SEC. Electronic copies of the prospectus supplement and the
accompanying prospectus relating to this offering may be obtained from Maxim
Group LLC at 300 Park Avenue, 16th Floor, New York, NY 10022, Attention:
Syndicate Department, or by telephone at (212) 895-3745 or by email at
syndicate@maximgrp.com. Electronic copies of the prospectus supplement and
accompanying prospectus are also available on the website of the SEC at
www.sec.gov.

This press release shall not
constitute an offer to sell or the solicitation of an offer to buy these
securities, nor shall there be any sale of these securities in any state or
other jurisdiction in which such offer, solicitation or sale would be unlawful
prior to the registration or qualification under the securities laws of any
such state or other jurisdiction.

About Paltalk, Inc. (Nasdaq:
PALT)

Paltalk, Inc. is a communications
software innovator that powers multimedia social applications. Our product
portfolio includes Paltalk and Camfrog, which together host one of the world’s
largest collections of video-based communities. Our other products include
Tinychat and Vumber. The Company has an over 20-year history of technology
innovation and holds 18 patents.

For additional information,
please visit: https://www.paltalk.com.

To be added to our news
distribution list, please visit: http://www.paltalk.com/investor-alerts/.

Forward-Looking Statements

This press release contains
“forward-looking statements.” Such statements may be preceded by the
words “intends,” “may,” “will,”
“plans,” “expects,” “anticipates,”
“projects,” “predicts,” “estimates,”
“aims,” “believes,” “hopes,”
“potential,” or similar words. Forward-looking statements are not
guarantees of future performance, are based on certain assumptions and are
subject to various known and unknown risks and uncertainties, many of which are
beyond the Company’s control, and cannot be predicted or quantified and
consequently, actual results may differ materially from those expressed or
implied by such forward-looking statements. Such risks and uncertainties
include, without limitation, the Company’s ability to retain the listing of its
common stock on The Nasdaq Capital Market; the impact of the COVID-19 pandemic
on our results of operations and our business; our ability to effectively
market and generate revenue from our applications; our ability to release new
applications or improve upon or add features to existing applications on
schedule or at all; risks and uncertainties related to our increasing focus on
the use of new and novel technologies to enhance our applications, and our
ability to timely complete development of applications using new technologies;
our ability to effectively secure new software development and licensing
customers; our ability to protect our intellectual property rights; the use of
the internet and privacy and protection of user data; risks related to our
holdings of digital tokens, including risks related to the volatility of the
trading price of digital tokens and our ability to convert digital tokens into
fiat currency; and our ability to manage our partnerships and strategic
alliances. More detailed information about the Company and the risk factors
that may affect the realization of forward-looking statements is set forth in
the Company’s filings with the Securities and Exchange Commission
(“SEC”), including the Company’s most recent Annual Report on Form
10-K and Quarterly Reports on Form 10-Q. Investors and security holders are
urged to read these documents free of charge on the SEC’s website at
www.sec.gov.

All forward-looking statements
speak only as of the date on which they are made. The Company undertakes no
obligation to update any forward-looking statement or statements to reflect
events or circumstances after the date on which such statement was made, except
to the extent required by applicable securities laws.