Inuvo raises $12.97M through debt and equity transactions

Inuvo, Inc. (NYSE American: INUV) announced financing transactions totaling $12.97 million in gross proceeds, according to a company statement.

The financing consists of two components. The first is a non-dilutive note purchase agreement closed on June 29, 2026, under which Inuvo issued two secured promissory notes with aggregate gross proceeds of $10 million. The first note carries a principal of $4.142 million at a 9.0% interest rate with an original issue discount of $342,000. The second note carries a principal of $6.2 million at a 5.0% interest rate with no original issue discount. Of the $10 million, $3.8 million was received immediately at closing, with the remaining $6.2 million placed into a collateralized deposit account subject to release upon specified conditions.

The proceeds were used to retire existing convertible promissory notes, including accrued interest totaling approximately $2.8 million, and to terminate the company's receivables-based credit facility. Following the transaction, Inuvo states it will carry no outstanding convertible debt and no balance under its prior credit facility. Remaining net proceeds are designated for working capital.

The second component is a registered direct offering and concurrent private placement expected to close on or about July 1, 2026. The registered direct offering involves the sale of approximately 2.97 million shares of common stock at $1.00 per share, generating expected gross proceeds of approximately $2.97 million before placement agent fees and expenses.

The concurrent private placement includes Class A warrants and Class B warrants, each to purchase up to 2.97 million shares of common stock at an exercise price of $1.28 per share. Class A warrants expire five years from issuance, and Class B warrants expire one year from issuance. Both become exercisable six months after issuance.

Ladenburg Thalmann & Co. Inc. is serving as exclusive placement agent for the offerings.

Chief Executive Officer Rob Buchner said the transactions "simplify our capital structure while providing liquidity" as the company focuses on its IntentKey AI platform.

You May Also Be Interested In

• Stripe, Advent In Talks To Buy Paypal - WSJ
• Jane Street Took $15 Billion Hit In July Tied To Situational Awareness - Reuters
• Waymo wins California approval to expand ride-hailing service