Banker: Newsmax Raises $135 Million in Pre-IPO Plan, Offer to Close Soon

By James Morley III

Mark Elenowitz, managing director for Digital Offering LLC, told Newsmax on Friday that "Newsmax is doing something that's never been done before."

Appearing on the ‘Finnerty’ show, Elenowitz announced that Newsmax had raised $135 million of its target of $150 million – and expects to close soon on its pre-IPO plan round.

Newsmax has already filed with the Securities and Exchange Commission and is seeking a public offering with an expected listing on the New York Stock Exchange under the symbol "NMAX."

Several months ago the company began a private offering of Preferred Shares with investment bank Digital Offering LLC as part of its anticipated public offering set for early 2025.

"We've had really good success. We were at $125 million, but we're now at $135 million subscribed from a $150 million offering,” Elenowitz told host Rob Finnerty

“So we only have about $15 million and we're coming up to end of the offering period," Elenowitz said, urging investors to act soon if they are interested in joining the pre-public offering round.

Invest in Newsmax Now: Own Shares, Find Out About IPO Plan, Buy Shares Today, See More Here

Elenowitz said interested investors can go to www.NewsmaxInvest.com.

He said Newsmax is expecting to close the offering “in the next couple weeks.”

Elenowitz stressed it was important for investors to begin the process or start the paperwork, and there may be an extension of the closing to accommodate such investors.

"The benefit of buying shares now is you get a 25% discount for the public offering," he said, clarifying the difference between the private placement and public offering.

He did note while the expected public offering is available to anyone over the age of 18, the current private placement is limited to an accredited investor. These are rules set by the SEC, he said.

"You need to have a $200,000 income and $1 million net worth. You get a 7% dividend that converts at the time of IPO into additional shares."

Elenowitz emphasized the unique opportunity.

"Newsmax is doing something that's never been done before. This is a crowd-financed public offering. It's designed for the everyday American — you as the viewer, you as the Newsmax supporter get a chance to be a part of Newsmax and its growth. This is Main Street meets Wall Street," Elenowitz concluded.

Newsmax has already become one of the nation's leading news networks and the fourth highest-rated cable news channel often vying with CNN for ratings.

In June, the Reuters Institute identified Newsmax as one of the top 12 U.S. news brands.

A separate Pew study found Newsmax was of the most influential media during the 2024 election, ranking with NBC, CBS, X, the New York Times, among others.

Invest in Newsmax Today: Own Shares, Find Out About IPO Plan, Buy Shares Today, See More Here

Disclaimer: Newsmax is currently undertaking a private placement offering pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Rule 506(c) of Regulation D promulgated thereunder. Investors should consider the investment objectives, risks, and investment time horizon of the Company carefully before investing. The private placement memorandum relating to this offering of equity interests by the Company will contain this and other information concerning the Company and the securities referenced in this document, including risk factors, which should be read carefully before investing.  You should be aware that (i) the securities may be sold only to “accredited investors,” as defined in Rule 501 of Regulation D; (ii) the securities will only be offered in reliance on an exemption from the registration requirements of the Securities Act and will not be required to comply with specific disclosure requirements that apply to registration under the Securities Act; (iii) the United States Securities and Exchange Commission will not pass upon the merits of or give its approval to the securities, the terms of the offering, or the accuracy or completeness of any offering materials; (iv) the securities will be subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities; 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. The offering documents may include “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions for forward looking statements. This information is supplied from sources we believe to be reliable but we cannot guarantee accuracy.  Although we believe our expectations expressed in such forward-looking statements are reasonable, we cannot assure you that they will be realized. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, but not limited to the risks and uncertainties set forth in the attached materials, which could cause actual results to differ materially from the anticipated results set forth in such forward-looking statements.  Any forward-looking statement made by us speaks only as of the date on which it is made, and we undertake no obligation to publicly update any forward-looking statement except as may be required by law. 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.