Cadre Holdings Announces Pricing of Public Primary and Secondary Offering of Common Stock

Rhea-AI Summary

Cadre Holdings, Inc. (NYSE: CDRE) announced a public offering of 4,000,000 shares at $23.50 each, comprising 2,250,000 shares from the company and 1,750,000 from selling stockholders. The primary offering increased from an initial 1,750,000 shares. An additional 600,000 shares may be purchased by underwriters within 30 days of the offering's close, expected on June 14, 2022. Net proceeds will reduce debt and fund corporate needs. BofA Securities and Jefferies lead the offering.

Positive

• Offering provides an opportunity to reduce outstanding debt, which could improve financial stability.
• Upsizing the primary offering indicates strong market demand for Cadre's shares.

Negative

• The secondary offering may dilute existing shareholders' equity.
• Market reaction to the increase in offering size and potential dilution remains uncertain.

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- Cadre Holdings, Inc. (NYSE: CDRE) (“Cadre” or “the Company”), a global leader in the manufacturing and distribution of safety and survivability equipment for first responders, announced today the pricing of the primary public offering of 2,250,000 shares of common stock by the Company and secondary offering of 1,750,000 shares of common stock by certain selling stockholders, at a public offering price of $23.50 per share. The primary offering was upsized from the previously announced 1,750,000 shares. In addition, the Company has granted the underwriters a 30-day option to purchase up to an additional 600,000 shares of its common stock. The offering is expected to close on June 14, 2022, subject to the satisfaction of customary closing conditions.

Cadre intends to use the net proceeds received from the offering to reduce outstanding indebtedness as well as for general corporate purposes. The selling stockholders will receive all of the net proceeds from the sale of shares of common stock sold by them in the offering.

BofA Securities and Jefferies are acting as lead book-running managers in the offering. B Riley Securities and Stephens Inc. are acting as book-running managers, and Roth Capital Partners, Lake Street Capital Markets, LLC and TCBI Securities, Inc. are acting as co-managers.

The offering will be made only by means of a prospectus. A copy of the prospectus relating to this offering, when available, may be obtained from the following sources: BofA Securities, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, North Carolina 28555, Attention: Prospectus Department or by email at dg.prospectus_requests@bofa.com; or Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York, 10022, by telephone at (877) 821-7388 or by email at prospectus_department@jefferies.com.

A registration statement on Form S-1, as amended, relating to these securities has been filed with the Securities and Exchange Commission and has become effective. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Cadre

Headquartered in Jacksonville, Florida, Cadre is a global leader in the manufacturing and distribution of safety and survivability products for first responders. Cadre's equipment provides critical protection to allow users to safely and securely perform their duties and protect those around them in hazardous or life-threatening situations. The Company's core products include body armor, explosive ordnance disposal equipment, and duty gear. Our highly engineered products are utilized in over 100 countries by federal, state and local law enforcement, fire and rescue professionals, explosive ordnance disposal teams, and emergency medical technicians. Our key brands include Safariland® and Med-Eng®, amongst others.

Forward-Looking Statements

Except for historical information, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include but are not limited to all projections and anticipated levels of future performance. Forward-looking statements involve risks, uncertainties and other factors that may cause our actual results to differ materially from those discussed herein. Any number of factors could cause actual results to differ materially from projections or forward-looking statements, including without limitation, our ability to complete the common stock offering on the proposed terms, or at all; our expectations related to the use of proceeds from the common stock offering; changes to global, social and political economic conditions; spending patterns of government agencies; competitive pressures; the impact of acquisitions and related integration activities; logistical challenges related to disruptions and delays; product liability claims; the success of new product introductions; currency exchange rate fluctuations; and the risks of doing business in the markets in which we operate, including foreign countries. More information on potential factors that could affect the Company’s business, results of operations and/or financial condition are more fully described from time to time in the Company’s public reports filed with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release, and speak only as of the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220609006046/en/

Gray Hudkins

Cadre Holdings, Inc.

203 550 7148

gray.hudkins@cadre-holdings.com

Investor Relations:

The IGB Group

Leon Berman / Matt Berkowitz

212 477 8438 / 212 227 7098

lberman@igbir.com / mberkowitz@igbir.com

Media:

Jonathan Keehner / Andrew Siegel

Joele Frank, Wilkinson Brimmer Katcher

212 355 4449

Source: Cadre Holdings, Inc.

FAQ

What is the price per share for Cadre Holdings' public offering?

The shares are priced at $23.50 each.

How many shares are being offered in the Cadre Holdings offering?

A total of 4,000,000 shares are being offered.

What will Cadre Holdings use the proceeds from the offering for?

The proceeds will be used to reduce outstanding debt and for general corporate purposes.

When is the closing date for Cadre Holdings' stock offering?

The offering is expected to close on June 14, 2022.

Who are the lead underwriters for the Cadre Holdings offering?

BofA Securities and Jefferies are acting as lead book-running managers.