Asana Announces $350 Million Private Placement

Rhea-AI Summary

Asana, Inc. (NYSE: ASAN) has announced the sale of $350 million worth of Class A common stock to CEO Dustin Moskovitz in a private placement, totaling 19,273,127 shares based on a closing price of $18.16 as of September 2, 2022. The proceeds will be utilized for working capital and general corporate purposes. The shares are not registered under the Securities Act and cannot be sold in the U.S. without proper registration or exemption. The press release also includes forward-looking statements regarding future growth and operational challenges.

Positive

• Sale of $350 million in Class A common stock may strengthen cash position.
• Proceeds earmarked for working capital and general corporate purposes.

Negative

• Sale of shares directly to CEO may raise concerns about insider transactions.
• Unregistered securities may limit the liquidity for future investors.

SAN FRANCISCO--(BUSINESS WIRE)-- Asana, Inc. (NYSE: ASAN)(LTSE: ASAN), a leading work management platform for organizations, today announced it has sold $350 million of shares of the Company’s Class A common stock to Dustin Moskovitz, Asana’s President, CEO, and Chair of the Board of Directors, in a private placement. The 19,273,127 shares of Class A common stock sold was determined based on a closing price of $18.16 on September 2, 2022.

The Company expects to use net proceeds from the private placement for working capital and general corporate purposes.

The Securities to be sold in the private placement have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state or other applicable jurisdiction's securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdiction's securities laws.

Forward-Looking Statements

This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include, but are not limited to, statements about the anticipated use of proceeds from the private placement. Forward-looking statements include all statements that are not historical facts and in some cases can be identified by terms such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “continue,” “could,” “potential,” “may,” “will,” “goal,” or similar expressions and the negatives of those terms. However, not all forward-looking statements contain these identifying words. Forward-looking statements involve known and unknown risks, uncertainties and other factors, including factors beyond Asana’s control, that may cause Asana’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks include, but are not limited to, risks and uncertainties related to: Asana’s ability to achieve future growth and sustain its growth rate, Asana’s ability to attract and retain customers and increase sales to its customers, Asana’s ability to develop and release new products and services and to scale its platform, Asana’s ability to increase adoption of its platform through Asana’s self-service model, Asana’s ability to maintain and grow its relationships with strategic partners, the highly competitive and rapidly evolving market in which Asana participates, Asana’s international expansion strategies, and the impact of the COVID-19 pandemic. Further information on risks that could cause actual results to differ materially from forecasted results are included in Asana’s filings with the SEC, including Asana’s Annual Report on Form 10-K for the year ended January 31, 2022 and Quarterly Reports on Form 10-Q for the quarter ended April 30, 2022. Any forward-looking statements contained in this press release are based on assumptions that Asana believes to be reasonable as of this date. Except as required by law, Asana assumes no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

About Asana

Asana helps organizations orchestrate their work, from small projects to strategic initiatives. Headquartered in San Francisco, CA, Asana has more than 131,000 paying customers and millions of free organizations over 200 countries and territories. Global customers such as Amazon, Affirm, Japan Airlines, and Sky rely on Asana to manage everything from company objectives to digital transformation to product launches and marketing campaigns. For more information, visit www.asana.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220907005985/en/

Catherine Buan

Asana Investor Relations

ir@asana.com

Stephanie Hess

Asana Corporate Communications

press@asana.com

Source: Asana, Inc.

FAQ

What is the recent stock sale by Asana and its purpose?

Asana sold $350 million worth of shares to CEO Dustin Moskovitz for working capital and general corporate purposes.

How many shares did Asana sell in the recent private placement?

Asana sold 19,273,127 shares of Class A common stock.

What was the closing price of Asana's stock during the recent sale?

The closing price of Asana's stock was $18.16 on September 2, 2022.

Are the shares sold by Asana registered under the Securities Act?

No, the shares sold in the private placement are not registered under the Securities Act.

What are the forward-looking statements in Asana's press release?

The statements include potential future growth and operational challenges Asana might face.