Leaf Group Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

Leaf Group Ltd. (NYSE: LEAF) announced plans for an underwritten public offering of its common stock. The company will sell shares and may grant underwriters a 30-day option for an additional 15% of shares. Proceeds from the offering are intended for working capital and general corporate purposes, including potential acquisitions, although no agreements are in place yet. Canaccord Genuity LLC is the sole book-running manager for this offering. The offer is made under a shelf registration statement declared effective by the SEC.

Positive

• Intended use of proceeds for working capital and potential acquisitions.
• Possibility of raising funds to strengthen financial position.

Negative

• Shareholder dilution risk from the public offering.
• Market uncertainty regarding the completion and terms of the offering.

SANTA MONICA, Calif., Dec. 09, 2020 (GLOBE NEWSWIRE) -- Leaf Group Ltd. (NYSE: LEAF), a diversified consumer internet company, today announced that it intends to offer and sell shares of its common stock in an underwritten public offering. In addition, Leaf Group intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares of its common stock to be sold in the offering. All shares of common stock to be sold in the proposed offering will be sold by Leaf Group. There can be no assurance as to whether or when the proposed offering may be completed, or as to the actual size or terms of the offering.

Leaf Group intends to use the net proceeds from the proposed offering, if completed, 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 is acting as sole book-running manager for the proposed offering. BTIG, LLC is acting as co-manager for the proposed offering.

The proposed offering is being made 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. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the proposed offering have been filed with the SEC and 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. The final terms of the proposed offering will be disclosed in a final prospectus supplement to be filed with the SEC.

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 intention to offer the securities and the expected uses of the proceeds from the proposed 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 is Leaf Group's recent public offering about?

Leaf Group announced an underwritten public offering of its common stock to raise funds for working capital and potential acquisitions.

What is the size of the offering planned by Leaf Group?

The exact size of the offering has not been disclosed, but underwriters may purchase an additional 15% of shares.

Who is managing Leaf Group's public offering?

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

What will Leaf Group do with the funds from the offering?

The net proceeds will be used for working capital, general corporate purposes, and possibly acquiring complementary businesses.

Is there a risk associated with Leaf Group's offering?

Yes, there is a risk of shareholder dilution and uncertainty regarding the completion and terms of the offering.