Verb Technology Company

Kurta Law is investigating broker recommendations of Verb Technology Company (NASDAQ: VERB). These investments were high-risk and may have been unsuitable for many investors. Unsuitable investments violate FINRA Rule 2111, which requires brokers to consider their investor’s risk tolerance. Regulation Best Interest also requires brokers to exercise reasonable care and skill when they make recommendations.

If a broker recommended unsuitable investments to you, you may have a case for a securities lawyer. Call (877) 600-0098 or email info@kurtalawfir.com for a free case evaluation.

The Offering

The prospectus dated January 24, 2023, announced that Verb Technology Company was offering 36,051,000 shares of common stock. Each share cost $0.20.

Penny stocks are always high-risk investments.

As of April 18, 2024, Verb Technology Company stock cost $0.17 per share.

About Verb Technology Company 

According to the prospectus, Verb Technology Company is a “Software-as-a-Service” (SaaS) applications platform developer. The prospectus states that the platform is comprised of a suite of interactive, video-based sales enablement software products that are marketed on a subscription basis.

Risk Factors Related to Investments in Verb Technology Company

The prospectus states, “Investing in our securities involves a high degree of risk.” The following are risks that Kurta Law has chosen to highlight – see the prospectus for the full list.

Immediate Dilution

The price-per-share for this stock offering was higher than the net tangible book value per share of the common stock. As a result, investors would suffer a dilution of their share value immediately upon purchase.

Additional Stock Offerings

Future stock offerings would also dilute the value of existing shares. Verb Technology Company expected that it would need additional capital, which it might raise by issuing more stock.

Pre-Funded Warrants

There is no public trading market for the pre-funded warrants in this offering, and Verb Technology Company did not expect one to develop.

Broad Discretion

Verb Technology Company management had broad discretion as to the use of the proceeds from this offering, and you might disagree with how they chose to spend those proceeds.

Risks Related to Low-Price Stocks

At the time of the offering, Verb Technology Company was not in compliance with the NASDAQ $1.00 minimum bid price requirement. Failure to maintain compliance with this standard could result in de-listing from the stock exchange.

Aegis Capital Corp. Underwriting  

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm.  

Kurta Law Can Help

Contact Kurta Law today for a free case evaluation – keep in mind that you have a limited time to file a claim. Our attorneys do not collect a fee unless we win your case. If you have any questions, call (877) 600-0098 or email info@kurtalawfirm.com.