The Duckhorn Portfolio, Inc. Announces Proposed Public Offering of Common Stock

Rhea-AI Summary

The Duckhorn Portfolio, Inc. (NYSE:NAPA) announced a public offering of 12,000,000 shares of its common stock by certain stockholders, with a 30-day option for underwriters to purchase an additional 1,800,000 shares. Notably, Duckhorn will not receive proceeds from this sale. J.P. Morgan, Credit Suisse, and Jefferies are leading the offering. A registration statement has been filed with the SEC but is not yet effective, meaning these shares cannot be sold until it is approved. The offering is dependent on market conditions.

Positive

• The offering may provide liquidity for selling stockholders.
• Potential market interest could elevate future stock performance.

Negative

• Duckhorn will not benefit financially from the sale of shares, impacting its cash reserves.
• Market reaction may lead to stock dilution concerns among investors.

ST. HELENA, Calif.--(BUSINESS WIRE)-- The Duckhorn Portfolio, Inc. ("Duckhorn") (NYSE:NAPA) today announced the commencement of an underwritten public offering of 12,000,000 shares of its common stock by certain of its stockholders (the “Selling Stockholders”). Additionally, the Selling Stockholders intend to grant the underwriters a 30-day option to purchase up to an additional 1,800,000 shares of common stock. Duckhorn will not receive any proceeds from the sale of the shares by the Selling Stockholders.

J.P. Morgan, Credit Suisse and Jefferies are acting as joint lead book-running managers for the offering. The proposed offering will be made only by means of a prospectus.

A registration statement on Form S-1 relating to the proposed offering has been filed with the SEC but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective.

Copies of the preliminary prospectus, may be obtained from: J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by telephone at 866-803-9204 or by email at prospectus-eq_fi@jpmorganchase.com; Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, NC 27560 or by telephone at 800-221-1037 or by email at usa.prospectus@credit-suisse.com; or Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, New York 10022 or by telephone at (877) 821-7388 or by email at Prospectus_Department@jefferies.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall 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. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Forward-Looking Statements

This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “project,” and other words of similar meaning. These forward-looking statements address various matters including statements regarding the proposed registered secondary public offering. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. For a discussion of some of the risks and important factors that could affect such forward-looking statements, see the sections entitled “Risk Factors” in the registration statement on Form S-1 related to the offering, in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2021 and in the Company’s other filings with the SEC. The Company cautions investors not to place considerable reliance on the forward-looking statements contained in this press release. The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update or revise any of these statements. The Company’s business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.

About The Duckhorn Portfolio, Inc.

The Duckhorn Portfolio is the premier producer of luxury wines in North America. The acclaimed Duckhorn Portfolio includes Duckhorn Vineyards, Decoy, Paraduxx, Goldeneye, Migration, Canvasback, Calera and Kosta Browne, each with its own dedicated winemaker.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211012006144/en/

Investors

Chris Mandeville, ICR

ir@duckhorn.com

707-302-2635

Media

Jessica Liddell, ICR

DuckhornPR@icrinc.com

203-682-8200

Source: The Duckhorn Portfolio, Inc.

FAQ

What is the Duckhorn Portfolio's recent stock offering?

Duckhorn is offering 12,000,000 shares of common stock by certain stockholders, with an option for underwriters to buy an additional 1,800,000 shares.

Who is managing the Duckhorn public offering?

J.P. Morgan, Credit Suisse, and Jefferies are acting as joint lead book-running managers for the offering.

When will the Duckhorn stock offering be effective?

The registration statement for the offering has been filed with the SEC but is not yet effective, meaning shares cannot be sold until approved.

How does Duckhorn's stock offering affect existing shareholders?

The offering might lead to stock dilution concerns since Duckhorn will not receive any proceeds from the sale.