A-Mark Precious Metals Announces Exercise of Over-Allotment Option in Public Offering

Rhea-AI Summary

A-Mark Precious Metals (NASDAQ: AMRK) announced that underwriters fully exercised their option to purchase an additional 375,000 shares related to a public offering of common stock. This brings the total shares sold to 2,875,000 at $28.00 per share, resulting in expected net proceeds of approximately $75.3 million. The funds will primarily support the acquisition of JM Bullion, Inc. If this acquisition does not occur, the proceeds will be used for general corporate purposes. The offering was facilitated by D.A. Davidson & Co. and Roth Capital Partners.

Positive

• Total shares sold increased to 2,875,000, demonstrating strong demand.
• Expected net proceeds of approximately $75.3 million will be available for strategic growth.

Negative

• The acquisition of JM Bullion is not guaranteed, posing a risk to the intended use of funds.
• Potential dilution of existing shares due to the increased number of shares issued.

EL SEGUNDO, Calif., March 10, 2021 (GLOBE NEWSWIRE) -- A-Mark Precious Metals, Inc. (NASDAQ: AMRK) (A-Mark), a leading fully integrated precious metals platform, announced today that the underwriters of its previously announced public offering of common stock have fully exercised their option to purchase an additional 375,000 shares. The option was granted in connection with the company’s public offering of 2,500,000 shares of common stock at a price to the public of $28.00 per share, which closed on March 8, 2021. After giving effect to the full exercise of the over-allotment option, the total number of shares sold by A-Mark in the public offering increased to 2,875,000 shares, and the company expects to receive total net proceeds from the public offering of approximately $75.3 million, after deducting the underwriter discounts and commissions and estimated offering expenses payable by A-Mark.

D.A. Davidson & Co. and Roth Capital Partners acted as joint book-running managers for the offering. CIBC Capital Markets acted as a co-manager for the offering.

A-Mark anticipates that the net proceeds from the offering will be used to fund a portion of the consideration payable in connection with the previously announced acquisition of JM Bullion, Inc. If the acquisition of JM Bullion is not consummated for any reason, proceeds from the offering will be used by A-Mark for general corporate purposes.

The offering was made pursuant to an effective registration statement on Form S-3 (No. 333-249060), which was declared effective by the Securities and Exchange Commission on March 4, 2021. Copies of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained from D.A. Davidson & Co., 8 Third Street North, Great Falls, MT 59401, by telephone: 1-800-332-5915, or by email: prospectusrequest@dadco.com.

This press release does not and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities law of any such state or jurisdiction.

Important Cautions Regarding Forward-Looking Statements
Statements in this press release that relate to the consummation of the acquisition of JM Bullion are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. The Company may be unsuccessful in consummating the acquisition of JM Bullion on the terms presently contemplated or at all. The acquisition is subject to various conditions which may not be satisfied depending on a variety of business, economic, political, governmental and market factors, including those that are described in the Company’s registration statement on Form S-3 and the final prospectus supplement referred to above and the Company’s other public filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Company Contact:
Thor Gjerdrum, President
A-Mark Precious Metals, Inc.
1-310-587-1414
thor@amark.com

Investor Relations Contact:
Matt Glover
Gateway Investor Relations
1-949-574-3860
AMRK@gatewayir.com

FAQ

What is the total number of shares sold in A-Mark's public offering on March 10, 2021?

A-Mark sold a total of 2,875,000 shares in its public offering.

What are the expected net proceeds from A-Mark's recent stock offering?

The expected net proceeds from the offering are approximately $75.3 million.

What will A-Mark use the proceeds from the public offering for?

The proceeds are primarily intended to fund the acquisition of JM Bullion, Inc.

Who managed A-Mark's public offering on March 10, 2021?

D.A. Davidson & Co. and Roth Capital Partners acted as joint book-running managers for the offering.

What is the issue regarding the acquisition of JM Bullion?

The acquisition is not guaranteed and is subject to various conditions that may not be met.