Digimarc, which supplies technology designed to detect gift-card tampering before activation, completed an equity offering on September 30 that raised USD18.18 million before fees and other expenses.

The company sold 4.5 million common shares at USD4.04 each. Its prospectus and announcement initially described an expected closing; a same-day ownership filing by investor Ocho Investments confirms that the offering closed and the shares were issued. [S01] [S02] [S03]

The transaction provides capital to a supplier operating in gift-card security and broader digital authentication. Digimarc says the net proceeds are for general corporate purposes. It has not allocated the financing specifically to gift cards or announced a new retailer deployment through this transaction.

An existing investor supplies most of the capital

Ocho purchased 3.675 million shares for USD14.847 million, using working capital. Its holding rose to five million shares, representing 18.5% of the 27,048,451 shares outstanding after the offering. That percentage includes its earlier investment as well as the new purchase. [S03]

USD million

Sources

Digimarc prospectus offering table; Ocho Schedule13D, source of funds

Other purchasers are the derived remainder:USD18.18m lessUSD14.847m. Company-wide funds are not a dedicated gift-card budget; Ocho’s18.5% ownership includes pre-existing shares.

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Digimarc gross offering funds by purchaser group (USD million)
Category	Gross capital
Ocho Investments	14.847 USD million
Other purchasers combined	3.333 USD million

Needham & Company acted as sole placement agent. The prospectus specifies a 4% placement fee, or USD727,200, leaving USD17.4528 million before other offering expenses. Digimarc separately estimated those other expenses at USD200,000; those estimates should not be read as a final cash-receipt statement. [S01]

The financing follows a disclosed liquidity constraint. The prospectus says Digimarc had USD8.8 million in cash, cash equivalents and marketable securities at June 30 and, excluding the offering proceeds, did not have sufficient resources for its anticipated cash needs over the following twelve months. Its discussion raises substantial doubt about continued operation without additional financing or other measures. The new equity supplies

Digimarc , which supplies technology designed to detect gift-card tampering before activation, completed an equity offering on September 30 that raised USD18.18 million before fees and other expenses. The company sold 4.5 million common shares at USD4.04 each. Its prospectus and announcement initially described an expected closing; a same-day ownership filing by investor Ocho Investments confirms that the offering closed and the shares were issued. [S01] [S02] [S03] The transaction provides capital to a supplier operating in gift-card security and broader digital authentication. Digimarc says the net proceeds are for general corporate purposes. It has not allocated the financing specifically to gift cards or announced a new retailer deployment through this transaction. An existing investor supplies most of the capital Ocho purchased 3.675 million shares for USD14.847 million, using working capital. Its holding rose to five million shares, representing 18.5% of the 27,048,451 shares outstanding after the offering. That percentage includes its earlier investment as well as the new purchase. [S03] Digimarc gross offering funds by purchaser group September 30 equity offering, before fees and expenses. Gross capital Ocho Investments: 14.847 USD million Other purchasers combined: 3.333 USD million Other purchasers are the derived remainder:USD18.18m lessUSD14.847m. Company-wide funds are not a dedicated gift-card budget; Ocho’s18.5% ownership includes pre-existing shares. Digimarc prospectus offering table Ocho Schedule13D, source of funds Needham & Company acted as sole placement agent. The prospectus specifies a 4% placement fee, or USD727,200, leaving USD17.4528 million before other offering expenses. Digimarc separately estimated those other expenses at USD200,000; those estimates should not be read as a final cash-receipt statement. [S01] The financing follows a disclosed liquidity constraint. The prospectus says Digimarc had USD8.8 million in cash, cash equivalents and marketable securities at June 30 and, excluding the offering proceeds, did not have sufficient resources for its anticipated cash needs over the following twelve months. Its discussion raises substantial doubt about continued operation without additional financing or other measures. The new equity supplies

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