01:32 PM EDT, 10/21/2024 (MT Newswires) -- Direct Digital ( DRCT ) said Monday it agreed to a $20 million equity reserve facility with New Circle Capital's affiliate New Circle Principal Investments.

The company said New Circle will purchase at its sole election from time to time class A common shares up to an aggregate of $20 million over 36 months.

Direct Digital ( DRCT ) said it plans to use the proceeds from the facility for general corporate purposes, including debt reduction, balance sheet strengthening and for driving key growth initiatives. Funds will be used for investments to drive technological advancements for Direct Digital's ( DRCT ) supply-side platform Colossus SSP, according to the company.

Shares were down 11% in recent trading.

Price: 2.63, Change: -0.33, Percent Change: -11.02