Venu Holding Corporation (NYSE:VENU) saw its stock price drop 16.9% in after-hours trading on Tuesday after the company disclosed plans for a registered underwritten public offering of its common shares.
The proposed offering would consist of roughly $75 million of common stock, subject to market conditions. Underwriters will have the option to purchase up to an additional $11.25 million of shares to cover potential over-allotments. Deutsche Bank Securities and ThinkEquity are named as joint book-running managers for the transaction.
Venu said the net proceeds from the sale of shares will be allocated primarily to development costs for several of its ongoing projects, specifically The Sunset McKinney, The Sunset Broken Arrow, and The Sunset El Paso. The company also indicated funds will be used to finish acquiring a parcel of real property in Centennial, Colorado, where it plans to build an indoor music hall and a restaurant.
The capital-raising announcement coincided with the release of preliminary financial metrics for the fourth quarter and full year 2025. Venu estimated fourth-quarter revenue in a range between $4.4 million and $4.8 million, up from $4.3 million in the fourth quarter of 2024.
The company forecasts total assets at year-end 2025 to be between $352.8 million and $355.4 million, nearly double the $178.4 million reported at the end of 2024.
Sales for the company’s Luxe FireSuite and Aikman Club offerings are estimated for the full year 2025 at between $125.3 million and $126.8 million, compared with $77.7 million in 2024, a year-over-year increase of approximately 62%.
In addition to the revenue and asset growth, Venu recorded its first development profit in the fourth quarter, recognizing $6.2 million from a sale-leaseback transaction involving parking property at its Colorado Springs campus.
JW Roth, Venu’s Chairman and Chief Executive Officer, said the company expects to reach operational profitability by the end of 2026 as multiple entertainment complexes approach completion.
Context and near-term focus
The offering is presented as a financing step to support Venu’s current pipeline of venue developments and an intended property acquisition for a dedicated indoor music hall and restaurant. The transaction and the company’s preliminary financials were released simultaneously, providing investors with updated performance metrics and a clear statement of how new capital would be employed.
What we know
- Venu announced a planned registered underwritten offering of approximately $75 million in common stock, with an over-allotment option of up to $11.25 million.
- Proceeds are earmarked for development costs on named projects and for completing the purchase of real property in Centennial, Colorado, intended for an indoor music hall and restaurant.
- Preliminary results for Q4 and full-year 2025 show modest revenue growth in Q4, significant asset growth year-over-year, a substantial increase in full-year sales for specific venue products, and recognition of a $6.2 million development profit in Q4.