Grove Collaborative Announces $15M PIPE Investment from Volition Capital
Grove Collaborative Holdings, Inc. (NYSE: GROV) has announced a $15 million investment from Volition Capital, bringing Volition's total investment to $25 million. The investment was led by Larry Cheng, managing partner at Volition and a Grove board member. Grove plans to use at least $10 million to pay off its outstanding term debt facility by November 30, 2024.
After full repayment, Grove's only remaining debt would be $7.5 million under its asset-based loan facility. In connection with the investment, Grove issued Volition 15,000 shares of Series A' Convertible Preferred Stock, initially convertible into 7,760,761 shares of Grove's Class A common stock at $1.9328 per share, a 45% premium to the 30-day trailing VWAP.
Grove CEO Jeff Yurcisin stated that this investment allows the company to become term debt-free, a key step in their turnaround strategy. The company has delivered four consecutive positive-adjusted EBITDA quarters and forecasts sequential revenue growth in Q4 2024.
Grove Collaborative Holdings, Inc. (NYSE: GROV) ha annunciato un investimento di 15 milioni di dollari da Volition Capital, portando l'investimento totale di Volition a 25 milioni di dollari. L'investimento è stato guidato da Larry Cheng, socio gestore di Volition e membro del consiglio di amministrazione di Grove. Grove prevede di utilizzare almeno 10 milioni di dollari per estinguere il suo debito a termine entro il 30 novembre 2024.
Dopo il rimborso completo, l'unico debito restante di Grove sarà di 7,5 milioni di dollari sotto il suo prestito garantito da attivi. In relazione all'investimento, Grove ha emesso a Volition 15.000 azioni di azioni privilegiate convertibili di Serie A', inizialmente convertibili in 7.760.761 azioni ordinarie di Classe A di Grove a 1,9328 dollari per azione, con un premio del 45% rispetto al VWAP degli ultimi 30 giorni.
Il CEO di Grove, Jeff Yurcisin, ha dichiarato che questo investimento consente all'azienda di liberarsi del debito a termine, un passo fondamentale nella loro strategia di recupero. L'azienda ha registrato quattro trimestri consecutivi di EBITDA rettificato positivo e prevede una crescita sequenziale del fatturato nel quarto trimestre del 2024.
Grove Collaborative Holdings, Inc. (NYSE: GROV) ha anunciado una inversión de 15 millones de dólares de Volition Capital, elevando la inversión total de Volition a 25 millones de dólares. La inversión fue liderada por Larry Cheng, socio gerente de Volition y miembro de la junta de Grove. Grove planea usar al menos 10 millones de dólares para pagar su deuda a plazo pendiente antes del 30 de noviembre de 2024.
Después del reembolso total, la única deuda restante de Grove sería de 7,5 millones de dólares bajo su instalación de préstamo respaldado por activos. En relación con la inversión, Grove emitió a Volition 15,000 acciones de acciones preferentes convertibles de Serie A', inicialmente convertibles en 7,760,761 acciones ordinarias de Clase A de Grove a 1.9328 dólares por acción, con una prima del 45% sobre el VWAP de los últimos 30 días.
El CEO de Grove, Jeff Yurcisin, declaró que esta inversión permite a la empresa quedar libre de deuda a plazo, un paso clave en su estrategia de recuperación. La empresa ha entregado cuatro trimestres consecutivos de EBITDA ajustado positivo y prevé un crecimiento secuencial de los ingresos en el cuarto trimestre de 2024.
그로브 협력 홀딩스, 주식회사 (NYSE: GROV)는 Volition Capital로부터 1,500만 달러의 투자를 발표하였으며, 이로써 Volition의 총 투자액은 2,500만 달러에 달하게 되었다. 이번 투자는 그로브 이사회 멤버이자 Volition의 매니징 파트너인 Larry Cheng이 주도하였다. 그로브는 최소 1,000만 달러를 사용하여 2024년 11월 30일까지 미지급 기한부 채무를 상환할 계획이다.
전체 상환 후, 그로브의 유일한 남은 채무는 자산 기반 대출 시설 하에 750만 달러가 될 것이다. 이번 투자와 관련하여 그로브는 Volition에 A시리즈' 전환우선주 15,000주를 발행하였으며, 이는 초기에는 1주당 1.9328달러로 7,760,761주의 그로브 A주식으로 전환될 수 있으며, 이는 30일 거래량 가중평균가격(VWAP)에 비해 45%의 프리미엄을 의미한다.
그로브의 CEO인 Jeff Yurcisin은 이번 투자가 회사가 기한부 채무에서 자유로워지는 것을 가능하게 해주어, 회복 전략에서 중요한 단계가 된다고 밝혔다. 회사는 긍정적으로 조정된 EBITDA가 4분기 연속으로 증가하였으며, 2024년 4분기에도 sequential 매출 성장을 예상하고 있다.
Grove Collaborative Holdings, Inc. (NYSE: GROV) a annoncé un investissement de 15 millions de dollars de Volition Capital, portant l'investissement total de Volition à 25 millions de dollars. L'investissement a été dirigé par Larry Cheng, associé directeur de Volition et membre du conseil d'administration de Grove. Grove prévoit d'utiliser au moins 10 millions de dollars pour rembourser sa dette à terme en cours d'ici le 30 novembre 2024.
Après remboursement intégral, la seule dette restante de Grove serait de 7,5 millions de dollars sous son prêt basé sur les actifs. Dans le cadre de l'investissement, Grove a émis à Volition 15 000 actions de la Série A' d'actions privilégiées convertibles, initialement convertibles en 7 760 761 actions ordinaires de Classe A de Grove à 1,9328 dollar par action, soit une prime de 45 % par rapport au prix moyen pondéré par volume (VWAP) des 30 derniers jours.
Le PDG de Grove, Jeff Yurcisin, a déclaré que cet investissement permet à l'entreprise de devenir sans dette à terme, une étape clé de sa stratégie de redressement. L'entreprise a enregistré quatre trimestres consécutifs de BAIIA ajusté positif et prévoit une croissance séquentielle des revenus au quatrième trimestre 2024.
Grove Collaborative Holdings, Inc. (NYSE: GROV) hat eine 15 Millionen US-Dollar Investition von Volition Capital angekündigt, wodurch das gesamte Investment von Volition auf 25 Millionen US-Dollar steigt. Die Investition wurde von Larry Cheng, geschäftsführender Gesellschafter von Volition und Mitglied des Vorstandes von Grove, geleitet. Grove plant, mindestens 10 Millionen US-Dollar zu nutzen, um bis zum 30. November 2024 seine ausstehenden Terminkredite abzuzahlen.
Nach der vollständigen Rückzahlung würde Grove nur noch 7,5 Millionen US-Dollar unter seiner aktivengesicherten Kreditfazilität haben. Im Zusammenhang mit der Investition hat Grove Volition 15.000 Aktien der Serie A' wandelbaren Vorzugsaktien ausgegeben, die ursprünglich in 7.760.761 Aktien der Stammaktien der Klasse A von Grove zum Preis von 1,9328 US-Dollar pro Aktie umwandelbar sind, was einen Aufschlag von 45 % auf die 30-Tage-Durchschnittskurs-WAP darstellt.
Der CEO von Grove, Jeff Yurcisin, erklärte, dass diese Investition es dem Unternehmen ermöglicht, frei von Terminkrediten zu werden, was ein wichtiger Schritt in ihrer Umstrukturierungsstrategie ist. Das Unternehmen verzeichnete vier aufeinanderfolgende Quartale mit positivem, bereinigtem EBITDA und prognostiziert ein sequenzielles Umsatzwachstum im vierten Quartal 2024.
- $15 million investment from Volition Capital, bringing total investment to $25 million
- Plans to pay off remaining $30 million of outstanding term debt facility
- Four consecutive positive-adjusted EBITDA quarters
- Forecasted sequential revenue growth in Q4 2024
- Strengthened balance sheet after debt repayment
- Issuance of 15,000 shares of Series A' Convertible Preferred Stock, potentially diluting existing shareholders
Insights
The
Key financial implications:
- Debt reduction: Grove plans to become term debt-free, with only
$7.5 million remaining under its asset-based loan facility. - Improved liquidity: Pro forma cash and cash equivalents would be approximately
$40.6 million . - Profitability trend: Grove has delivered four consecutive positive-adjusted EBITDA quarters.
- Growth prospects: The company is forecasting sequential revenue growth in Q4 2024.
The investment terms, including the
Grove Collaborative's
Key market implications:
- Increasing demand for sustainable products: Grove's platform for conscientious consumers aligns with growing environmental awareness.
- Competitive advantage: The company's unique positioning as a plastic neutral retailer differentiates it in the crowded e-commerce space.
- Market validation: Volition's increased investment suggests potential for significant market growth in sustainable everyday essentials.
- Customer focus: Grove's strategy to offer both planet-friendly and wallet-friendly products addresses a important market need.
The involvement of Larry Cheng, known for his successful investment in Chewy, adds credibility to Grove's potential in the direct-to-consumer market. This investment and debt reduction could enhance Grove's ability to capture market share and drive innovation in sustainable consumer products, potentially leading to increased customer acquisition and retention.
Grove Collaborative is the one-stop online destination for sustainable everyday essentials. (Photo: Business Wire)
Volition previously invested
Notably, with a portion of this investment and its cash on hand, Grove plans to pay off the remaining
In connection with the investment from Volition, Volition’s forfeiture and termination of all existing warrants to purchase, in the aggregate, 1,600,683 shares of Grove’s Class A Common Stock, and Volition’s agreement to modify certain terms of the Company’s existing Series A Convertible Preferred Stock, Grove issued Volition 15,000 shares of Grove's Series A' Convertible Preferred Stock. The Series A' Convertible Preferred Stock is initially convertible into 7,760,761 shares of Grove’s Class A common stock based on an initial conversion price of
“I’m thrilled to announce this
“This investment is driven by my belief that the Grove management team has done an excellent job executing on the fundamentals of the business. The company has made major strides in profitability and has been Adjusted EBITDA positive for the preceding four consecutive quarters. With our investment and the planned pay off of the remainder of the term debt, the balance sheet will be stronger. And I believe the pieces are in place to enable a return to top line revenue growth in the coming quarters," said Cheng. "All of this has been accomplished while substantially improving Grove’s offering to better and more consistently delight customers."
At Volition, Mr. Cheng focuses on Internet and consumer investing. Mr. Cheng currently sits on the boards of Arteza, Burst Oral Care, GameStop, Mozaic Payments, Recycle Track Systems (RTS), Rounds, Screenverse, Sensible Care, Super73 and US Mobile. He also led investments in Chewy, Connatix, Cortera, Dragonfly Commerce, Globaltranz, Mindshift Technologies, OpenNetwork Technologies, Prosper Marketplace, Stylesight, Verid and Ximian. Prior to founding Volition, Mr. Cheng also worked at Fidelity Ventures, Battery Ventures, Bessemer Venture Partners and Corporate Decision, Inc.
About Grove Collaborative Holdings, Inc.
Grove Collaborative Holdings, Inc. (NYSE: GROV) is the one-stop online destination for sustainable everyday essentials. Driven by the belief that changing the world starts with what you bring into your home, Grove creates and curates household cleaning, personal care, health and wellness, laundry, clean beauty, baby, and pet care products from over 240 brands that help you Go Beyond Plastic. Everything Grove sells meets a higher standard — from ingredients to performance to packaging and environmental impact — so you get a great value without compromising your values. With Grove, you can see, track, and celebrate your sustainable choices. Be a force of nature at Grove.com.
About Volition Capital
Volition Capital is a
Caution Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about repayment of the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240923503642/en/
Investor Relations Contact
ir@grove.co
Media Relations Contact
Ryan.Zimmerman@grove.co
Source: Grove Collaborative Holdings, Inc.
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