IZEA Announces Commencement of a Modified Dutch Auction Tender Offer to Repurchase up to $8.7M of its Common Stock

Rhea-AI Summary

IZEA Worldwide (NASDAQ: IZEA) has announced a modified "Dutch auction" tender offer to repurchase up to $8.7 million of its common stock. The company is offering to purchase shares at a price range between $2.30 and $2.80 per share, with the maximum price representing approximately 120% of its 90-day volume-weighted average purchase price of $2.29 through May 12, 2025.

The tender offer will run from May 16, 2025, to June 16, 2025. IZEA will determine the lowest single per-share price that will enable it to purchase the maximum dollar amount of shares properly tendered, with all accepted shares being purchased at the same price regardless of the tender price.

Positive

• Share repurchase program of $8.7 million demonstrates confidence in company's financial position
• Premium offering price up to 120% of recent trading average shows commitment to shareholder value
• Modified Dutch auction format allows for efficient price discovery and fair treatment of all participating shareholders

Negative

• Significant cash expenditure of $8.7 million may reduce company's financial flexibility
• Share repurchase could reduce the stock's public float and trading liquidity

Insights

Financial Analyst

IZEA's $8.7M stock buyback through a Dutch auction signals management confidence and could support share price while enhancing shareholder value.

IZEA's announcement of a modified Dutch auction tender offer to repurchase up to $8.7 million of its common stock represents a significant capital allocation decision. The company is offering to purchase shares at prices between $2.30 and $2.80 per share, with the upper bound set at approximately 120% of their 90-day volume-weighted average purchase price of $2.29.

This tender offer structure is particularly interesting as it allows shareholders to indicate the minimum price they're willing to accept, with IZEA ultimately paying the lowest price that enables them to purchase their targeted amount. This approach typically maximizes the number of shares repurchased while ensuring fairness in price determination.

The $8.7 million commitment demonstrates management's confidence in the company's intrinsic value and future prospects. Stock buybacks generally benefit remaining shareholders through enhanced ownership percentage and potential EPS improvements. For a company operating in the competitive influencer marketing space, this capital return signals financial stability and potentially that management views the current share price as undervalued.

The premium offering (up to 22% above recent trading prices) provides an attractive exit opportunity for shareholders while potentially establishing a price floor that could stabilize IZEA's stock. The one-month tender period (May 16 to June 16) gives shareholders adequate time to evaluate this liquidity event against their investment goals.

Ultimately, this repurchase program represents a strategic financial maneuver that could simultaneously support share price, optimize capital structure, and deliver immediate value to participating shareholders while potentially enhancing long-term value for those who remain invested.

ORLANDO, Fla., May 16, 2025 (GLOBE NEWSWIRE) -- IZEA Worldwide, Inc. (NASDAQ: IZEA), a leading influencer marketing company that makes Creator Economy solutions for marketers, announced today that it has commenced a modified “Dutch auction” tender offer (the “Offer”) to repurchase up to $8,700,000 of its common stock.

Under the terms of the Offer, IZEA is offering to purchase shares of its common stock at a price not less than $2.30 and not more than $2.80 per share, which maximum price equals approximately 120% of our 90-day volume-weighted average purchase price of $2.29 per share through May 12, 2025. The Offer will commence on May 16, 2025, and expire at 5:00 p.m., Eastern Time, on June 16, 2025, unless extended or terminated.

Stockholders may tender some or all of their shares at a price within the specified range. Based on the number of shares tendered and the prices specified by tendering stockholders, IZEA will determine the lowest single per-share price that will allow it to purchase up to the maximum dollar amount of shares properly tendered. All shares accepted in the Offer will be purchased at the same price, regardless of the price at which they were tendered.

The Offer is being made pursuant to an Offer to Purchase and related materials, which will be filed with the Securities and Exchange Commission (“SEC”) and distributed to stockholders.

Important Information
The Offer described in this press release has commenced and will not be made to any person in any jurisdiction in which either the Offer, or solicitation or sale thereof, is unlawful. This announcement is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell any securities of IZEA. The Offer is only being made pursuant to the Offer to Purchase, letter of transmittal, and related materials filed with the SEC as part of a Schedule TO. Stockholders are strongly encouraged to read the tender offer statement on Schedule TO, the Offer to Purchase, and other related documents, as they contain important information and an explanation of the terms and conditions for participation. Stockholders may obtain a free copy of the tender offer statement on Schedule TO, the offer to purchase, letter of transmittal and other documents that the Company will be filing with the SEC at the SEC's website at www.sec.gov or from the information agent for the Offer, MacKenzie Partners, by phone at 1-800-322-2885, or by e-mail addressed to tenderoffer@mackenziepartners.com.

About IZEA Worldwide, Inc.
IZEA Worldwide, Inc. (“IZEA”), is an influencer marketing company with a mission to make creator economy solutions for marketers. We do this by lighting up the Creator Economy with IZEAs—our strategies, campaigns, and solutions that build brands and drive demand. Since launching the industry’s first-ever influencer marketing platform in 2006, IZEA has facilitated nearly 4 million collaborations between brands and creators.

Press Contact
Matt Gray
IZEA Worldwide, Inc.
Phone: 407-674-6911
Email: ir@izea.com

FAQ

What is the price range for IZEA's Dutch auction tender offer?

IZEA is offering to purchase shares at a price range between $2.30 and $2.80 per share.

When does IZEA's tender offer expire?

The tender offer expires at 5:00 p.m. Eastern Time on June 16, 2025, unless extended or terminated.

How much stock is IZEA planning to repurchase in the tender offer?

IZEA plans to repurchase up to $8.7 million worth of its common stock.

How does IZEA's modified Dutch auction tender offer work?

Shareholders can tender shares at prices within the specified range. IZEA will determine the lowest price that allows it to buy the maximum shares, and all accepted shares will be purchased at the same final price.

Who is the information agent for IZEA's tender offer?

MacKenzie Partners is serving as the information agent for the tender offer, available at 1-800-322-2885 or tenderoffer@mackenziepartners.com.