PRPL - Purple Innovation stock slips on mixed shelf offering

Purple Innovation ( NASDAQ: PRPL ) shares slid sharply in premarket action on Tuesday after announcing a $90M mixed shelf offering.

An SEC filing said that the $90M offering of Class A common stock, preferred stock, warrants, debt securities, subscription rights and units in one or more offerings and in any combination will, among other things, help the company pay down debt and support its acquisition of Intellibed. The company purchased Intellibed in an all-stock deal valued at $28.3M in September.

“The acquisition of Intellibed is expected to be a strong strategic addition to us because of shared technology, geographic proximity of their primary facility, and target market extension,” the company said. “In addition, the acquisition allowed us to consolidate ownership of our intellectual property and more fully capitalize on growing demand for products with gel technologies. Intellibed’s higher price points compared to our existing product offerings will be a natural extension of our product line.”

The company also acknowledged an offer by Coliseum Capital to acquire all outstanding shares of the company for $4.35 made in September.

Shares of Purple Innovation ( PRPL ) slipped 4.14% in premarket trading on Tuesday.

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