Newsmax, a conservative cable news and online media company, raised $75 million by offering 7.5 million shares at $10, the company announced on Friday.
Rather than a firm commitment underwritten offering, the transaction was instead completed on a min-max, "best efforts" basis under Regulation A+ at a fixed price of $10 per share. Digital Offering LLC acted as the lead selling agent for the public offering. The $75 million deal represents the maximum allowed under the terms of the offering.
Newsmax plans to list on the NYSE on Monday under the symbol NMAX.
Based in Boca Raton, FL, Newsmax states that it is the fourth highest-rated news channel in the US, behind CNN. The company says that its multi-platform content reaches over 40 million Americans each month, through its Newsmax TV channels, website, radio shows and podcasts, magazines, and newsletters. Top shareholders include founder and CEO Christopher Ruddy and billionaire Thomas Peterffy.
During the first half of 2024, Newsmax generated $80 million in revenue, up 35% year-over-year, noting that the business is seasonally strong during years with presidential elections. Adjusted EBITDA, which adds back litigation-related expenses, was $5 million (6.4% margin). Net loss for the period was $56 million.
