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Market conditions put halt to PeerStream (OTC:PEER) offering plans

Tony Zerucha

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Blockchain-based internet solutions provider PeerStream (OTC:PEER) has cancelled their planned public offering due to poor market conditions.

PeerStream contacted the Securities and Exchange Commission to withdraw its registration statement related to its proposed public offering of units consisting of shares of common stock and warrants to purchase common stock. As a result of the withdrawal request, no securities will be offered or sold pursuant to the registration statement. Following the withdrawal of the registration statement, common stock will continue to be quoted on the OTCQB Marketplace under the symbol “PEER.”

PeerStream said it generates strong cash flow from its consumer apps business, including Paltalk and Camfrog, that has funded innovation and new business opportunities. Management said it remains confident it has the resources necessary to execute its strategic growth plans to help drive adoption of emerging blockchain technology by developing software, services and applications for corporate clients and consumers. PeerStream remains solidly capitalized with ample cash and no debt on its balance sheet to fund internal growth efforts for the foreseeable future and remains steadfast in its goal to obtain a national securities exchange listing in 2019, the company said in a statement. 

“The principal focus of the capital raise was to uplist to the NASDAQ, not to fund the business, which is already well capitalized,” CEO Alex Harrington said. “With the poor market conditions, we felt that the terms for a securities offering would be unattractive, and we see opportunities in 2019 to pursue a national securities exchange listing.  Also, terminating the offering affords us a valuable opportunity to apply our full attention to driving growth and profitability in the business in 2019.”

The material is not to be construed as an offer or a recommendation to buy or sell a security. See full Terms of Service.

Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

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