Wag! Group Co. Announces Pricing of Public Offering of $10 Million of Shares of Common Stock
Wag! Group Co. (Nasdaq: PET), a platform for pet services, products, and wellness, has announced the pricing of its public offering of 7,407,407 shares of common stock at $1.35 per share. The offering is expected to raise $10 million in gross proceeds. Wag! plans to use the net proceeds to repay approximately $8.5 million of debt, with the remainder for working capital and general corporate purposes. The offering is set to close around July 18, 2024, subject to customary conditions. Craig-Hallum is acting as the sole managing underwriter. The offering is made pursuant to a shelf registration statement filed with the SEC, with a final prospectus supplement to be filed.
- Raising $10 million in gross proceeds through public offering
- Plans to repay $8.5 million of indebtedness
- Potential improvement in financial position by reducing debt
- Potential dilution of existing shareholders' ownership
- Only $1.5 million remaining for working capital after debt repayment
- Low offering price of $1.35 per share may indicate weak market perception
Insights
Wag! Group Co. has announced a public offering to raise
From a market perspective, Wag!'s decision to raise additional capital through a public offering points to a need for liquidity, which could be indicative of either upcoming strategic initiatives or financial challenges. The fact that the company is prioritizing debt repayment suggests a focus on improving its balance sheet, which is generally a positive sign. However, the dilution of shares might pose concerns for current shareholders regarding their ownership percentage and potential earnings per share. For retail investors, it's essential to understand that while this move may strengthen the company's financial foundation, it might also place downward pressure on the stock price in the near term. It's also important to consider how the current economic landscape and market conditions could impact the success of this offering and the overall perception of the company's financial health.
Craig-Hallum is acting as sole managing underwriter for the offering.
The shares described above are being offered by Wag! pursuant to a shelf registration statement on Form S-3, including a base prospectus, that was filed with the Securities and Exchange Commission (“SEC”) and declared effective on September 13, 2023. The offering is being made only by means of a prospectus supplement and the accompanying prospectus that will form a part of the registration statement. A preliminary prospectus supplement and the accompanying prospectus relating to the offering was filed with the SEC on July 16, 2024. The final prospectus supplement and the accompanying prospectus relating to the offering will be filed with the SEC and available on the SEC’s website at www.sec.gov. When available, copies of the final prospectus supplement and the accompanying prospectus relating to this offering may be obtained from Craig-Hallum Capital Group LLC, Attention: Equity Capital Markets, 222 South Ninth Street, Suite 350,
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 jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About Wag! Group Co.
Wag! Group Co. strives to be the number one platform to solve the service, product, and wellness needs of the modern
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the words “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast” and other similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to, those related to the expected gross proceeds from the offering, the intended use of proceeds and the closing date of the offering. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to, factors related to market conditions, the closing date of the offering and Wag!’s ability to further develop and advance its pet service offerings and achieve scale. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the preliminary prospectus supplement and the accompanying prospectus, Wag!’s filings with the SEC, including Wag!’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Wag! assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
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Media: Media@wagwalking.com
Investor Relations
Wag!: IR@wagwalking.com
Gateway for Wag!: PET@gateway-grp.com
Source: Wag! Group Co.
FAQ
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