Car-sharing start-up HyreCar sought to generate $10.5 million via an initial public offering deployed in early June.
The company surpassed that goal by more than $2 million
On Friday, the company announced the closing of its IPO of 2,520,000 shares of its common stock at a price of $5 per share. HyreCar has received total gross proceeds of $12.6 million before deducting underwriting fees and estimated offering expenses.
HyreCar also granted the underwriters a 45-day option to purchase an additional 378,000 shares of common stock at the initial public offering price, which if exercised, would generate another $1.89 million of gross proceeds before underwriting discounts and commissions.
According to a company news release, the underwriters have not yet exercised such option.
The shares began trading on the Nasdaq Capital Market under the symbol "HYRE" on Wednesday.
Network 1 Financial Securities acted as the managing underwriter for the offering.
The offering was made only by means of a prospectus.
Exceeding its objective could help HyreCar the way the company anticipated.
According to its official filing with the Securities and Exchange Commission, HyreCar closed 2017 by generating revenues of $3,223,874 but incurring a net loss of $4,271,732. A year earlier, the company earned revenues of $515,437 and incurred a net loss of $866,676.
The company acknowledged those financial challenges are making the funds generated through the IPO so crucial as Auto Remarketing previously reported here.
“We intend to rely on debt and equity financing for working capital until positive cash flows from operations can be achieved, which may never occur,” HyreCar said in its SEC paperwork. “We have incurred operating losses since inception. These matters raise substantial doubt about our ability to continue as a going concern.”