By Freddy Sebastian
Shares of FreeCast were lower after the technology company agreed to a private placement transaction with investors.
Its stock was down 15% at $5.70 in premarket trading Wednesday.
The company said it has entered into securities purchase agreements with new institutional and existing long-term investors to sell 4.67 million Class A shares and pre-funded warrants to purchase 3.24 million shares in a private placement.
FreeCast expects gross proceeds of about $23.7 million and plans to use net proceeds for working capital and other general corporate purposes.
The closing is expected on Thursday.
Write to Freddy Sebastian at freddy.sebastian@wsj.com