Marchex To Commence Underwritten Public Offering Of 5.71 Mln Shares

(RTTNews) - Marchex Inc. (MCHX), a mobile advertising technology company, announced that it will commence an underwritten public offering, subject to market and other conditions, of 5.71 million shares of Marchex's Class B common stock.

The company will be offering 2.86 million shares of its Class B common stock and an additional 2.86 million shares of its Class B common stock will be offered by certain existing shareholders identified in the prospectus supplement relating to the offering.

Marchex intends to grant to the underwriters a 30-day option to purchase up to an additional 514,100 shares of Class B common stock to cover over-allotments, if any, and the selling shareholders, collectively, intend to grant the underwriters a 30-day option to purchase up to an additional 343,000 shares of Class B common stock, if any, in each case at the public offering price less the underwriting discount.

Marchex intends to use the net proceeds of the offering for general corporate purposes, which may include acquisitions or licenses of, or investments in, products, services, technologies or other businesses. Marchex said it will not receive any of the proceeds from the sale of shares by the selling shareholders.

For the First Quarter ending March 31, 2014, the company now expects Call-Driven Revenue to be $42 million or more, compared to prior estimate of $40 million or more. Call-Driven Adjusted OIBA is now expected to be in the range of $1.5 million -$2.1 million, compared to the previous estimate of $1 million -$2 million. Call-Driven Adjusted EBITDA is now expected to be in the range of $2.5 million - $3.1 million, versus the prior estimate of $2 million - $3 million.

Marchex plans on updating its outlook for the full year ending December 31, 2014 in early May in connection with its release of financial results for the first quarter of 2014.