BOCA RATON, Fla.--(BUSINESS WIRE)--Newsmax Inc. (“Newsmax” or the “Company”) announced today that the Company has successfully raised over $150 million* in its Preferred Stock private offering, in advance of its planned Initial Public Offering, subject to SEC approval.
Due to high demand, Newsmax is extending the Preferred Stock private offering by an additional $25 million, increasing the total offering to $175 million.
“We are excited by the incredible investor interest and overwhelming support we have received for our Preferred Stock offering,” said Christopher Ruddy, CEO of Newsmax.
“This extension is a testament to the confidence our investors have in Newsmax’s future and the tremendous growth we have experienced as we prepare to go public. We look forward to bringing our company to the public markets soon, providing further access for our viewers and supporters to invest in Newsmax and our vision.”
Newsmax has confidentially submitted IPO offering materials with the SEC and is seeking a Public Offering with a planned listing on the New York Stock Exchange under the symbol “NMAX.”
For a limited-time, eligible investors are still able to invest in the private offering shares of the Company’s Series B 7% Convertible Preferred Stock. Newsmax has successfully completed the entirety of its planned $150 million for the Private Offering and the Company is now extending the total offering to $175 million.
The Preferred Shares offered are convertible preferred stock with a 7% accrued dividend. These shares are priced at a 25% discount to the expected public offering price and will be registered for trading at the time of the public offering.
This offering is solely available to accredited investors**.
Qualified prospective investors who meet the qualifications of an “accredited investor” can invest as little as $5,000 in this offering and join Newsmax as a shareholder and owner.
Additional details about the Private Offering and the contemplated Public Offering are available at www.NewsmaxInvest.com.
Founded in 1998 as a digital media brand, Newsmax entered the cable news market in 2014. Since then, the network has had an astonishing rise, climbing into the top tier of cable channels, and is now the fourth highest-rated cable news channel in the U.S., just behind CNN.
The Company has developed a significant audience, reaching over 40 million Americans each month through its television broadcasts and multi-platform content, and now, with the addition of YouTube TV, is in almost 60 million homes.
According to Nielsen, Newsmax was the only cable news channel to see ratings growth across all dayparts in 2023. In 2024, Nielsen reported that Newsmax was up double-digits across all dayparts: 23% among all audiences in Total Day, compared to 2023; up 15% in daytime; 37% in access; 26% in prime and 43% on weekends. For the third quarter of 2024, Nielsen also said that 34 million Americans watched Newsmax, up 48% from the second quarter.
In June of 2024, the Reuters Institute study found Newsmax was one of the top 12 news brands in the U.S. Pew Research also said that Newsmax was one of the top news sources during the 2024 election – ranked with X, AP, the New York Times, CBS and NBC, among others.
About Newsmax
Newsmax Inc. is a holding company that owns 100% of the equity interests of its operating company Newsmax Media, Inc. Newsmax Media, Inc. is the parent company of Newsmax Broadcasting LLC and a multimedia company that offers Americans independent news. Since its founding in 1998 by Christopher Ruddy, an award-winning journalist, Newsmax has become a go-to place for Americans seeking real news and opinion.
Newsmax operates the Newsmax channel, now the fourth highest-rated cable news channel, according to Nielsen, and available on all major cable systems and OTT platforms. Nielsen reported that Newsmax was the only cable news channel to see ratings growth across all dayparts in 2023.
Newsmax's media properties reach more than 40 million Americans regularly through the Newsmax channel, its free streaming channel Newsmax2, the Newsmax App and its streaming service Newsmax+, its website Newsmax.com, and publications like Newsmax Magazine. More than 16 million people follow Newsmax on social media platforms like X, Facebook, LinkedIn, Instagram and Truth Social.
Forbes calls Newsmax “a news powerhouse.”
Through its media outlets Newsmax champions a free press, one that provides Americans with balanced coverage, diverse viewpoints, and honest debates on the issues affecting our lives.
Newsmax Inc., based in Boca Raton, Fla., with offices in Washington, D.C. and New York City, is a privately held company headed by its CEO and majority shareholder Christopher Ruddy. For more information about Newsmax, please visit https://www.NewsmaxInvest.com.
About Digital Offering, LLC
Digital Offering, LLC (“DO”), a leader in crowd financed public offerings, is a next generation investment bank with a focus on technology and innovation utilizing The Jumpstart Our Business Startups Act, or JOBS Act.
For over a decade they specialize in helping high-quality private and public growth companies access U.S. capital markets and achieve their growth objectives. With constantly changing markets and regulation Digital Offering is applying the best practices of traditional investment banking to new securities industry rules to enhance efficiency in capital raising.
*DISCLAIMER: Raised includes closed proceeds and investments committed / in process of closing.
**DISCLAIMER: Please note: Accredited investors are defined under Rule 506(c) of Regulation D promulgated by the Securities and Exchange Commission under the Securities Act, as amended (the “Securities Act’). Investors should consider the investment objectives, risks and investment time horizon of the Company carefully before investing.
The Shares offered in the private offering will not be and have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Investing in these securities involves a high degree of risk, and investors should be able to bear the loss of their entire investment. Furthermore, investors must understand that such investment could be illiquid for an indefinite period of time.
Additional details of the offering, including a private placement memorandum, can be found at NewsmaxInvest.com.
Under Rule 506(c), general solicitation of offerings is permitted, however, purchasers in a Rule 506(c) offering must be "accredited investors."
The SEC defines the term "accredited investor" in Rule 501(a). Generally, individuals are considered accredited investors if they have a net worth greater than $1 million (excluding their primary residence) or incomes in excess of $200,000 in the last two years with the expectation of the same in the current year (or $300,000 with a spouse).
At the closing of the company’s anticipated public offering, the company will convert all shares sold in this private offering (Series B 7% Preferred Offering) to common shares. To the extent such common shares are not tradeable after a statutory holding period, Newsmax intends to file a registration statement with the Securities and Exchange Commission that will seek to register these common shares, subject to approval by the Commission, that will allow them to be traded on a public exchange.
The Company is “Testing the Waters” under Regulation A under the Securities Act of 1933. The Company is not under any obligation to make an offering under Regulation A. No money or other consideration is being solicited in connection with the information provided, and if sent in response, will not be accepted. No offer to buy the securities can be accepted and no part of the purchase price can be received until an offering statement on Form 1-A has been filed and until the offering statement is qualified pursuant to Regulation A of the Securities Act of 1933, as amended, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date. Any person’s indication of interest involves no obligation or commitment of any kind. The information in that offering statement will be more complete than the information the Company is providing now, and could differ materially. You must read the documents filed. No offer to sell the securities or solicitation of an offer to buy the securities is being made in any state where such offer or sale is not permitted under the “blue sky” or securities laws thereof. No offering is being made to individual investors in any state unless and until the offering has been registered in that state or an exemption from registration exists therein. The securities offered using Regulation A are highly speculative and involve significant risks. The investment is suitable only for persons who can afford to lose their entire investment. Furthermore, investors must understand that such investment could be illiquid for an indefinite period of time. No public market currently exists for the securities, and if a public market develops following the offering, it may not continue. The Company intends to list its securities on a national exchange and doing so entails significant ongoing corporate obligations including but not limited to disclosure, filing and notification requirements, as well compliance with applicable continued quantitative and qualitative listing standards.
