Why Is Veritone Stock Falling Thursday?

Veritone Inc. (NASDAQ: VERI) experienced a significant stock decline of approximately 37% on Thursday, following the announcement of a $15 million registered direct offering to sell 20 million shares of common stock. The company aims to use the proceeds to repay a portion of its convertible debt and for general corporate purposes. As of June 30, Veritone had $12.4 million in cash and $45.5 million in outstanding convertible notes due in 2026, and it reported a second-quarter operating loss of $22.1 million. The stock was trading around 75 cents, with trading volume surging to about 20.2 million shares, compared to an average of 3.25 million shares.