Veritone Inc. (VERI) Eyes Financial Strength with $25M Public Offering

Veritone Inc. (NASDAQ:VERI) is one of the best AI stocks to buy under $5. On September 10, the company priced an underwritten public offering of 9.51 million shares at $2.63 per share. The company is eyeing $25 million in gross proceeds from the offering.

It has also granted underwriters an option to purchase an additional 1.43 million shares at the public offering price. Veritone plans to use net proceeds from the offering as working capital and for general corporate purposes. Part of the funds is to go towards servicing the debt and repayment of indebtedness.

The pricing of the public offering comes on the heels of the company amending its Credit and Guaranty Agreement, thereby increasing its liquidity requirement to $15 million, effective September 13. Recent actions are part of an effort to strengthen the financial standing.

Veritone Inc. (NASDAQ:VERI) is an enterprise AI company that develops and provides AI software, applications, and services through its aiWARE platform, which orchestrates various machine learning models to transform data into actionable intelligence.

While we acknowledge the potential of VERI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.