PRPL - Purple Innovation rises on MOU with Coliseum Capital Management news

2023-04-13 16:45:28 ET

• Purple Innovation ( NASDAQ: PRPL ) rose ~13% Thursday post-market after the comfort products company said it has entered into a binding MOU with Coliseum Capital Management to establish a cooperative governance framework.
• Coliseum Capital Management is the largest stockholder of Purple Innovation, with ~44% ownership.
• The agreement requires the Purple board to be reconstituted to consist of 8 directors.
• 5 of the 8 directors currently serve on the board. The other 3 directors were previously nominated by Coliseum at the company's 2023 annual meeting of stockholders.
• Adam Gray is set to become the board chair.
• As part of the agreement, the company said it will redeem the shares of proportional representation preferred linked stock that were previously distributed as a dividend on the shares of Purple.
• Additionally, Coliseum will dismiss its litigation against the company.
• Source: Press Release

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