PRPL - Purple Innovation stock down on pricing upsized equity offering of 14M shares
Purple Innovation (NASDAQ:PRPL) has priced an upsized public offering of 14M shares of its Class A common stock. Underwriters' over-allotment is an additional 2.1M shares of Class A common stock. The offering is expected to close on March 29, 2022. If, after receiving the net proceeds of the offering, the company has more than $25M of cash on hand, then it will be required to use such excess cash to prepay the outstanding balance under the revolving loans, up to the amount of the entire outstanding balance as per the Credit Agreement, dated as of September 3, 2020 and amended as of February 28, 2022 and March 23, 2022. Remaining et proceeds will be used for working capital and general corporate purposes, which may include working capital, capital expenditures, other corporate expenses and acquisitions of complementary products, technologies or businesses. Shares down 9% premarket.
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Purple Innovation stock down on pricing upsized equity offering of 14M shares