Alkami Technology Unveils Plans for Secondary Stock Offering
Plano, Texas (November 6, 2024) – Alkami Technology, Inc. (NASDAQ: ALKT), a prominent player in the cloud-based digital banking solutions landscape, has announced the launch of an underwritten secondary offering of its common stock. The offering, which will involve the sale of a total of 7,500,000 shares, is aimed at providing existing investors with an opportunity to liquidate some of their holdings.
Key Details of the Offering
The secondary offering will be led by J.P. Morgan Securities LLC, acting as the sole book-running manager. The selling stockholders participating in the offering include entities affiliated with General Atlantic, S3 Ventures Fund III, L.P., George B. Kaiser, and Brian R. Smith. These stockholders are expected to grant the underwriter an option to purchase up to 1,125,000 additional shares within a 30-day timeframe.
It’s crucial to note that Alkami Technology itself will not be selling any shares in this offering and will not be receiving any of the proceeds from the sale. The net proceeds from the offering will go directly to the selling stockholders.
Offering Timeline and Market Conditions
The successful completion of the offering is contingent upon prevailing market conditions and other relevant factors. While the company aims to finalize the offering promptly, there’s no guarantee of its completion or the specific terms under which it may occur.
Understanding the Offering Mechanics
The underwriter, J.P. Morgan Securities LLC, will be responsible for distributing the shares of common stock to investors. This could be done through various methods, including sales on the Nasdaq Global Select Market, over-the-counter transactions, or negotiated deals. The selling price will be determined based on prevailing market conditions at the time of the sale.
Regulatory Compliance and Transparency
The offering is being conducted in accordance with the Securities Act of 1933, utilizing an automatically effective shelf registration statement filed with the Securities and Exchange Commission (SEC). This registration statement, filed on Form S-3, became effective on August 8, 2024.
Potential investors are encouraged to review the prospectus included in the registration statement, along with related documents, before making investment decisions. These documents, including any free writing prospectus, prospectus supplement, or other SEC filings, provide comprehensive information about Alkami Technology and the offering.
About Alkami Technology
Alkami Technology, Inc. is recognized as a leading provider of cloud-based digital banking solutions for financial institutions in the United States. The company’s suite of solutions empowers its clients to enhance their growth, adapt to market changes rapidly, and foster thriving digital communities. Alkami’s offerings encompass a wide range of capabilities, including retail and business banking, digital account opening, payment security, data analytics, and marketing solutions.
Forward-Looking Statements
This press release contains forward-looking statements pertaining to the size, timing, and potential completion of the offering, as well as the grant of the option to purchase additional shares. These statements are based on the current knowledge, beliefs, and assumptions of management. Investors should understand that these forward-looking statements involve inherent risks, uncertainties, and other factors that could lead to actual results differing significantly from the anticipated outcomes.
Such factors include but are not limited to: Alkami’s limited operating history and past financial performance, its ability to manage future growth, its capacity to attract and retain clients, the unpredictable nature of sales cycles, competition in the industry, and potential changes in regulatory and legal requirements.
Alkami Technology undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.
