Shares of Veritone, Inc. ( VERI ) are falling Thursday after the California-based company announced an equity offering.

VERI is feeling the pressure from bearish momentum. See the full story here.

What To Know: Veritone ( VERI ), which builds AI tools for enterprise companies, entered into a definitive agreement to offer and sell approximately 12.86 million shares of its common stock at $5.83 per share.

Veritone’s stock was down more than 18% following the news, according to Benzinga Pro.

The company anticipates gross proceeds of $75 million from the offering. Net proceeds are expected to be used for working capital and general corporate purposes. The common stock offering is expected to close on Friday.

Veritone ( VERI ) had approximately $13.57 million of total cash and cash equivalents as of June 30, according to the company’s latest earnings report. Veritone ( VERI ) is due to report third-quarter results on Nov. 6. Analysts expect the company to report a loss of 16 cents per share and revenue of $28.69 million.

VERI Analysis: Technical indicators suggest that Veritone ( VERI ) stock is currently in an overbought condition, as reflected by an RSI of 78.34. This level often signals that a correction may be imminent, particularly after such a sharp decline from the previous close of $8.39. The price is notably above both the 50-day moving average at $3.90 and the 200-day moving average at $2.71, indicating strong upward momentum over the medium to long term.

VERI Price Action: Veritone ( VERI ) shares were down 18.36% at $6.85 at the time of publication on Thursday. The stock is trading within its 52-week range of $1.22 to $9.42.

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