SEC Company Response from CLOUDCOMMERCE, INC. (AIAD) (CIK 0000743758) — Feb 16, 2021
CLOUDCOMMERCE, INC. (AIAD) (CIK 0000743758)
Date: Feb. 16, 2021 · CIK: 0000743758 · Accession: 0001213900-21-009301
AI Filing Summary & Sentiment
File numbers found in text: 333-252358
Referenced dates: February 11, 2021
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CORRESP
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Barrett
S. DiPaolo Partner
bdipaolo@srf.law
D
+1.646.810.2173
February
16, 2021
Securities
and Exchange Commission
Division
of Corporation Finance
Office
of Trade & Services
100
F Street, NE
Washington,
DC 20549
Attention: Daniel
Morris
Mara Ransom
Re:
CloudCommerce, Inc.
Registration Statement on Form S- 3
Filed January 22, 2021
File No. 333-252358
Ladies
and Gentlemen:
Set
forth below, on behalf of our client CloudCommerce, Inc. (the “Company”), we are submitting the Company’s responses
to comments received from the staff of the Division of Corporation Finance (the “Staff”) of the Securities and Exchange
Commission (the “Commission”) by letter dated February 11, 2021 (the “Comment Letter”), with respect to
the Company’s Registration Statement on Form S-3 filed with the Commission on January 22, 2021 (the “Registration
Statement”). Concurrently with this letter the Company is filing Amendment No. 1 to the Registration Statement to respond
to the comments contained in the Comment Letter and to make certain other changes.
To
facilitate the Staff’s review, we have included in this letter the captions and numbered comments from the Comment Letter
in bold text and have provided the Company’s responses immediately following the numbered comments in plain text.
Correspondence
dated February 5, 2021
Cover
Page
1. Describe
the recent price volatility in your stock and briefly disclose any known risks of investing
in your stock under these circumstances.
1185
Avenue of the Americas | 37th Floor | New York, NY 10036
T
+1.212.930.9700 | F +1.212.930.9725 | www.srf.law
Securities
and Exchange Commission
Division
of Corporation Finance
February
16, 2021
Page
2
2. Add,
for comparison purposes, disclosure of the market price of your common stock prior to
the recent price volatility in your stock. For example, disclose the price at which your
stock was trading 60 days prior to your filing.
3. Describe
any recent change in your financial condition or results of operations, such as your
earnings, revenues or other measure of company value that is consistent with the recent
change in your stock price. If no such change to your financial condition or results
of operations exists, disclose that fact.
We
have added disclosures to the cover page of the prospectus that we believe are responsive to these comments.
Risk
Factors, page 4
4. Include
a risk factor addressing the recent extreme volatility in your stock price. Your disclosure
should include intra-day stock price range information and should cover a period of time
sufficient to demonstrate the recent price volatility and should address the impact on
investors. Your disclosure should also address the potential for rapid and substantial
decreases in your stock price, including decreases unrelated to your operating performance
or prospects. To the extent recent increases in your stock price are significantly inconsistent
with improvements in actual or expected operating performance, financial condition or
other indicators of value, discuss the inconsistencies and where relevant quantify them.
If you lack information to do so, explain why.
5. We
note the significant number of shares you may offer relative to the number currently
outstanding. Include a risk factor that addresses the impact that the offering could
have on your stock price and on investors.
6. To
the extent you expect to conduct additional offerings in the future to fund your operations
or provide liquidity, include a risk factor that addresses the dilutive impact of those
offerings on investors that purchase shares in this offering at a significantly higher
price.
We have added new Risk Factor
disclosures that we believe are responsive to these comments.
www.srf.law
Securities
and Exchange Commission
Division
of Corporation Finance
February
16, 2021
Page
3
General
7. Please
amend each prospectus to state that securities in the primary and resale offerings will
be sold at a fixed price until your shares are quoted on an established market. In this
regard, please remove disclosure that securities will be sold at the market, at prevailing
prices, or at negotiated prices.
We
have amended both prospectuses to provide that securities will be sold at a fixed price until our common stock is quoted on an
established market and only thereafter at the market, at prevailing prices, or at negotiated prices.
We
trust that you will find the responses above and the changes in Amendment No. 1 to the Registration Statement to adequately address
the foregoing comments.
As
it is the goal of the Company to have the Form S-3 declared effective no later than 5:30 P.M. EST on Tuesday, February 16, 2021,
the Company would greatly appreciate the Staff’s review of this letter as promptly as practicable. If you have any questions
with respect to the foregoing, please contact the undersigned by telephone at 646.810.2173 or by email at bdipaolo@srf.law.
Sincerely
yours,
/s/
Barrett S. DiPaolo
www.srf.law