Professional Diversity Network, Inc. announced that it has entered into a security purchase agreement and has secured a committed equity financing facility to issue common shares for the gross proceeds of $12,775,000 over a 24-month period on June 30, 2023. The transaction included participation from new investor Tumim Stone Capital LLC. The price of shares sold in each draw will be a pre-negotiated discount to the volume-weighted-average price of company's common stock over a multi-day pricing period.

The company may not issue more than 2,052,879 shares in connection with the facility, which is less than 20% of its outstanding shares of common stock on June 29, 2023, subject to certain exceptions. The purchase agreement also provides for an initial purchase of $2 million of common stock at the average of the last five closing prices reported on Nasdaq at the time of signing.