Alkami Tech extends decline after $300 mln convertible offering priced

Shares of digital banking firm Alkami Technologies Inc ALKT.O down 1% at $23.62 early Tues after securing capital raise to finance acquisition

ALKT shares. which are falling for 4th straight session, lost nearly 13% on Mon amid broader retreat in equities

Plano, Texas-based firm late Mon announced pricing private offering of $300 mln 1.5% 5-yr convertible bonds

Initial conversion price of $32.82 represents 37.5% premium to stock's last close

Co plans to use ~$29.5 mln of net offering proceeds to pay for capped calls, remainder to fund previously announced pending acquisition of MANTL

On Feb 27, co said it would buy Fin Technologies (MANTL), an account opening solution, for $400 mln enterprise value, and announced Q4 results and 2025 outlook

Co has ~$2.4 bln current market cap, per LSEG data

With move on the session, shares off ~36% YTD following ~51% gain in 2024

8 of 11 analysts covering ALKT rate stock "strong buy" or "buy", rest "hold"; median PT of $45 implies ~90% upside to current levels - LSEG