Fathom Holdings Inc. , a national, technology-driven, end-to-end real estate services platform integrating residential brokerage, mortgage, title, insurance, and SaaS offerings for brokerages and agents, today announced the closing of its previously announced underwritten public offering of 1,750,000 shares, inclusive of 350,000 secondary shares, of its common stock at a price to the public of $25.00 per share (the “Offering”).
The Company also granted the underwriters of the Offering a 45-day option to purchase up to an additional 15% of the shares of common stock offered in the underwritten public offering on the same terms and conditions. After the underwriting discount, the Company received net proceeds of approximately $32.7 million, not including an exercise of the overallotment option or expenses related to the Offering.
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Roth Capital Partners and Stephens Inc. acted as joint book-running managers for the Offering, with D.A. Davidson & Co. acting as co-manager.
“Our primary objective for this raise is to use the funds, in part, to further accelerate the Company’s growth through acquisition of smaller real estate brokerages that we expect to be immediately accretive to our business,” said Fathom CEO Joshua Harley. “We are focused on acquisition targets that are in new or smaller geographic markets in order to achieve scale quickly, enhance revenue per transaction and launch mortgage and title faster than would otherwise be feasible. We also may use some of the funds for sales and marketing initiatives, investments in technology, working capital, and for general corporate purposes. Since our IPO in July 2020, we believe Fathom has performed exceptionally well and has continuously exceeded top line expectations,” Harley added.
A shelf registration statement relating to the shares of common stock to be issued in the Offering was filed with the Securities and Exchange Commission (the “SEC”) and is effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Copies of the prospectus in connection with this Offering will be filed with the SEC and, when available, may be obtained from Roth Capital Partners, LLC, 888 San Clemente, Newport Beach, CA 92660, Attention: Prospectus Department, by telephone at (800) 678-9147 and Stephens Inc., 111 Center Street, Little Rock, AR 72201, Prospectus Department, by telephone at (501) 377-2131 or by accessing the SEC’s website, www.sec.gov.
