Benzinga | Apr 1, 2021 08:40AM EDT

Telos Shares Are Trading Lower On Raising $41M Via Secondary Shares At 13% Discount

* Cyber, cloud, and enterprise security solutions provider Telos Corp (NASDAQ: TLS) priced 7.91 million shares at $33 per share in a follow-on secondary public offering. The offering includes 6.66 million shares from selling shareholders.

* The offer price signifies a 13% discount to the company's Wednesday closing price of $37.92.

* Telos will raise gross proceeds of $41 million roughly.

* B. Riley Securities, BMO Capital Markets, and Needham & Company are the joint bookrunners for the offering.

* The underwriters have a 30-day option to purchase additional shares up to 1.2 million, including 0.4 million shares of the selling stockholders.

* Telos held cash and cash equivalents of $106 million as of Dec. 31, 2020.

* Price action: TLS shares traded lower by 10.6% at $33.9 in the premarket session on the last check Thursday.