MeetMe has closed its public offering, during which it offered 8m shares at a price of $5 per share.
The offering also included the 30-day option for underwriters to purchase an additional 1.2m shares of its common stock.
Shares slumped after the company announced the decision to sell common stock to the public, which would increase MeetMe’s outstanding share count by 14% if the maximum number of shares sold.
This came after shares rose 16% after MeetMe’s impressive fourth quarter results, when it posted total revenue growth of 34% for 2016.
After ending the public offering, shares closed at $4.96, rising to $4.99 in after-hours trading.
Canaccord Genuity Inc. and Roth Capital Partners acted as joint-book-running managers, with Northland Securities, Inc. serving as co-manager.
Earlier this year, MeetMe announced plans to acquire Silicon Valley social company if(we) for $60m.
Read more about the acquisition here.