News

Paltalk, Inc. Announces Pricing of $10.125 Million Underwritten Public Offering of Common Stock

SmallCaps Daily October 15, 2021

178 4 minutes read

Jericho, NY – (NewMediaWire) – October 14, 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 pricing of its previously announced underwritten public
offering of 1,350,000 shares of its common stock. Each share of common stock
was sold at a public offering price of $7.50, for gross proceeds of
approximately $10.125 million, before deducting underwriting discounts and
offering expenses. In addition, Paltalk has granted the underwriters a 45-day
option to purchase up to an additional 202,500 shares of common stock to cover
over-allotments at the public offering price, less the underwriting discount.
All of the shares of common stock were offered by the Company. The offering is
expected to close on October 19, 2021, subject to customary closing conditions.

Paltalk currently intends to
use the net proceeds from the offering to fund development costs related to new
and existing applications, advertising and marketing initiatives to further
grow its applications and services, acquisitions of, or investments in,
businesses or technologies that complement the business, and for working
capital and general corporate purposes.

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

The public offering is being
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 may be offered only by means of a prospectus. A preliminary
prospectus supplement describing the terms of the public offering has been
filed with the SEC. A final prospectus supplement will be filed with the SEC
and will form a part of the effective registration statement. Copies of the
final prospectus supplement and accompanying prospectus relating to the public
offering may be obtained, when available, by contacting 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.

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 in
this press release include statements regarding the anticipated closing of the
offering and the Company’s intended use of the net proceeds from the
offering. 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, market and other conditions and the satisfaction of customary
closing conditions related to the offering; 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.