IZEA Announces Final Results of its Modified Dutch Auction Tender Offer

Rhea-AI Summary

IZEA Worldwide has announced the final results of its modified Dutch auction tender offer to repurchase shares. The company accepted 38,682 shares at $2.80 per share, representing approximately 0.23% of outstanding shares as of June 16, 2025. The total cost of the repurchase was approximately $108,310, excluding fees and expenses. The tender offer expired on June 16, 2025, and Broadridge Financial Solutions, the depositary, will promptly issue cash payments for accepted shares. Following this purchase, approximately $8.6 million remains outstanding under IZEA's stock repurchase obligations. The shares will be purchased using cash on hand, and unaccepted tendered shares will be returned to stockholders.

Positive

• Company demonstrates financial strength by using cash on hand for share repurchases
• Approximately $8.6 million remains available for future stock repurchases
• Share repurchase program could help improve shareholder value

Negative

• Low participation rate with only 38,682 shares tendered out of 8,700,000 shares sought
• Minimal impact on share count with only 0.23% of outstanding shares being repurchased
• Limited immediate benefit to shareholders due to small repurchase size

Insights

Financial Analyst

IZEA's tender offer resulted in minimal share repurchase (0.23% of outstanding shares), despite $8.6M remaining in buyback program.

IZEA's modified Dutch auction tender offer has concluded with underwhelming participation. The company repurchased just $108,310 worth of shares (38,682 shares at $2.80 each), representing a mere 0.23% of outstanding shares. This is significantly below the maximum 8,700,000 shares the company was prepared to repurchase.

The minimal participation suggests shareholders largely preferred to maintain their positions rather than tender shares at the $2.80 offer price. This could indicate that existing investors see greater potential value in holding their shares versus accepting the tender price.

Perhaps most noteworthy is that approximately $8.6 million remains outstanding under the company's stock repurchase authorization. This substantial remaining capacity signals that IZEA maintains significant financial flexibility for future share repurchases through alternative methods, such as open market purchases or privately negotiated transactions.

The underwhelming tender results raise questions about the effectiveness of IZEA's capital return strategy and whether the tender price was set at an attractive enough level to entice shareholder participation. With such limited uptake, the tender offer has had negligible impact on IZEA's capital structure, outstanding share count, and earnings per share metrics.

ORLANDO, Fla., June 18, 2025 (GLOBE NEWSWIRE) -- IZEA Worldwide, Inc. (NASDAQ: IZEA), a leading influencer marketing company that makes Creator Economy solutions for marketers, announced today the preliminary results of its modified “Dutch auction” tender offer (the “Offer”) to repurchase up to 8,700,000 of its common stock at a price of $2.80 per share (the "Purchase Price"), less any applicable withholding taxes and without interest, using cash on hand. The Offer expired at 5:00 P.M., Eastern time, on June 16, 2025 (the "Expiration Date").

Based on the Final count by Broadridge Financial Solutions, the depositary for the Tender Offer (the “Depositary”), a total of 38,682 shares were properly tendered and not properly withdrawn in the Tender Offer. In accordance with the terms and conditions of the Tender Offer, the Company has accepted for purchase 38,682 shares in the Tender Offer for an aggregated cost of approximately $108,310, excluding all fees and expenses. The shares acquired pursuant to the Tender Offer represent approximately 0.23% of the Company’s outstanding shares as of June 16, 2025.

The Depositary will promptly issue payment in cash for the shares validly tendered and accepted for purchase in the Tender Offer, less any applicable withholding taxes and without interest. Shares tendered and not accepted for purchase will be returned promptly to stockholders by the Depositary in accordance with applicable law. Following the purchase of shares in the Tender Offer, approximately $8.6 million will remain outstanding under the Company’s stock repurchase obligations.

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 was the final result of IZEA's Dutch auction tender offer?

IZEA's Dutch auction tender offer resulted in the acceptance of 38,682 shares at $2.80 per share, totaling approximately $108,310, representing 0.23% of outstanding shares.

How much did IZEA pay per share in the tender offer?

IZEA paid $2.80 per share in the tender offer.

How many shares remain under IZEA's stock repurchase program?

Following the tender offer purchase, approximately $8.6 million remains outstanding under IZEA's stock repurchase obligations.

When did IZEA's tender offer expire?

IZEA's tender offer expired at 5:00 P.M., Eastern time, on June 16, 2025.

What percentage of IZEA's outstanding shares were repurchased?

The repurchased shares represent approximately 0.23% of IZEA's outstanding shares as of June 16, 2025.