05:24 AM EDT, 06/25/2025 (MT Newswires) -- Allot (ALLT) said late Tuesday that it priced an offering of 5 million shares at $8 each, aiming to raise $40 million in gross proceeds.

The company also granted underwriters a 30-day option to purchase up to 750,000 additional shares.

Allot plans to use the proceeds to repay $31.4 million owed to its largest shareholder, Lynrock Lake Master Fund, tied to a 2022 convertible note with a face value of $40 million. Lynrock has agreed to convert the remaining $8.59 million of the note into Allot's shares, subject to a 75-day lock-up period.

The offering is expected to close Thursday and will leave Allot debt-free post-transaction.

Shares of Allot slumped 9% in recent premarket activity Wednesday.

Price: 8.74, Change: -0.87, Percent Change: -9.05