Direct Digital Holdings announced on October 21, 2024, that it has entered into a $20 million Equity Reserve Facility (ERF) with New Circle Principal Investments LLC. This facility allows New Circle to purchase shares of Class A common stock up to an aggregate of $20 million over 36 months, at the company's sole election.
The proceeds from these sales are intended for general corporate purposes, including reducing debt obligations and strengthening the overall balance sheet. The funding will also drive key growth initiatives across the company's subsidiaries.
Specifically, the company expects to invest in technological advancements for Colossus SSP, including new segment-based products and direct integrations with demand-side platforms. On the demand side, funding will support the unification of Orange 142 and Huddled Masses to deliver new capabilities in AI, machine learning, and emerging channels.
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