Leaf Group Announces Closing of Public Offering of Common Stock

Rhea-AI Summary

Leaf Group Ltd. (NYSE: LEAF) has successfully closed its public offering of 8,216,750 shares at a price of $4.20 per share, raising approximately $32.0 million in net proceeds. The funds will be allocated for working capital, general corporate purposes, and potentially for acquiring complementary businesses and technologies in the future. Canaccord Genuity LLC served as the lead manager for this offering, underpinned by a shelf registration statement effective since October 26, 2020.

Positive

• Raised approximately $32.0 million in net proceeds.
• Funds intended for working capital and potential acquisitions.

Negative

• Dilution of existing shares due to the offering.

SANTA MONICA, Calif., Dec. 14, 2020 (GLOBE NEWSWIRE) -- Leaf Group Ltd. (NYSE: LEAF), a diversified consumer internet company, today announced the closing of its underwritten public offering of 8,216,750 shares of its common stock, including full exercise of the underwriter’s option to purchase additional shares of common stock, at a public offering price of $4.20 per share. All shares of common stock sold in the offering were sold by Leaf Group.

Leaf Group received aggregate net proceeds from the offering of approximately $32.0 million, after deducting the underwriting discounts and commissions and estimated offering expenses payable by Leaf Group. Leaf Group intends to use the net proceeds from the offering for working capital and general corporate purposes. Leaf Group may also use a portion of the net proceeds to acquire complementary businesses, products and technologies, although Leaf Group has no agreements, commitments or understandings to do so at this time.

Canaccord Genuity LLC acted as sole book-running manager for the offering. BTIG, LLC acted as co-manager for the offering.

The securities described above were offered pursuant to a shelf registration statement on Form S-3 (File No. 333-249476) that was declared effective by the U.S. Securities and Exchange Commission, or the SEC, on October 26, 2020. The offering was made by means of a prospectus supplement and accompanying prospectus filed with the SEC, copies of which may be obtained by visiting the SEC’s website at www.sec.gov or by contacting Canaccord Genuity LLC, 99 High Street, 12^th Floor, Boston, MA 02110, Attn: Syndicate Department, or by e-mail at prospectus@cgf.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or other 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 other jurisdiction.

About Leaf Group

Leaf Group Ltd. (NYSE: LEAF) is a diversified consumer internet company that builds enduring, creator-driven brands that reach passionate audiences in large and growing lifestyle categories, including fitness and wellness (Well+Good, Livestrong.com and MyPlate App), and home, art and design (Saatchi Art, Society6 and Hunker).

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These include statements regarding, but not limited to, Leaf Group’s expected uses of the proceeds from the offering. Forward-looking statements can be identified by the use of words such as “may,” “will,” “plan,” “should,” “expect,” “anticipate,” “estimate,” “continue” or comparable terminology. Forward-looking statements involve risks and uncertainties that could cause actual results or developments to differ materially from those indicated due to a number of factors affecting Leaf Group’s operations, markets, products and services. Leaf Group identifies the principal risks and uncertainties that may impact its performance in its public reports filed with the SEC, including the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition” sections of Leaf Group’s most recent Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q. Forward-looking statements speak only as of the date on which they are made and Leaf Group assumes no obligation to update any forward-looking statements.

Investor Contact

Shawn Milne
SVP Corporate Finance and Investor Relations
310-656-6346
shawn.milne@leafgroup.com

FAQ

What are the details of Leaf Group's recent stock offering?

Leaf Group closed a public offering of 8,216,750 shares at $4.20 each, raising about $32 million.

How will Leaf Group use the proceeds from the stock offering?

The proceeds will be used for working capital, general corporate purposes, and potentially for acquisitions.

Who managed the Leaf Group public offering?

Canaccord Genuity LLC acted as the sole book-running manager for the offering.

What impact does the offering have on Leaf Group shareholders?

The offering may lead to dilution of existing shares for shareholders.