Purple Innovation Announces Voluntary Delisting of Warrants
Purple Innovation, Inc. (NASDAQ: PRPL) has announced its decision to voluntarily delist its warrants (NASDAQ: PRPLW) from Nasdaq following the redemption of specific outstanding warrants scheduled for November 30, 2020. The remaining outstanding warrants will consist of approximately 8.5 million Sponsor Warrants, held by 16 holders. The Company believes limited trading activity in the warrants and associated costs justify the withdrawal of the listing. The delisting will take effect ten days after a Form 25 is filed with the SEC.
- The company is proactively managing its financial instruments by delisting warrants, reducing associated costs.
- Following the redemption, the company will maintain 8.5 million Sponsor Warrants, indicating potential future capital.
- The decision to delist warrants indicates limited trading activity, which could adversely affect liquidity.
- Market perception may be negatively impacted due to the voluntary withdrawal of warrants from listing.
LEHI, Utah, Nov. 19, 2020 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) ("the Company"), the leader in comfort innovation and the creator of the renowned Purple® Mattress, announced that it has notified the Nasdaq Stock Market of its intention to voluntarily withdraw the Nasdaq listing of its warrants to purchase common stock (NASDAQ: PRPLW) that will remain outstanding following the completion of the Company's previously announced redemption of certain outstanding warrants. The listing of the Company's Class A common stock, which is traded on Nasdaq under the ticker symbol "PRPL," will not be affected by the delisting of the Company's warrants.
The company currently has outstanding (i) warrants that were issued in the initial public offering of the Company's predecessor (the "Public Warrants"), (ii) warrants that were issued in a private placement (the "Sponsor Warrants"), and (iii) warrants that were issued to certain lenders in connection with the closing of the Amended and Restated Credit Agreement dated February 26, 2019 (the "Incremental Loan Warrants"). The Public Warrants and Sponsor Warrants are listed on The Nasdaq Stock Market and currently trade under the symbol "PRPLW."
As previously announced, the Company provided notice to the holders of the Public Warrants and the Incremental Loan Warrants that their warrants will be redeemed in accordance with the terms of such warrants on November 30, 2020 (the "Redemption").
After the effectiveness of the Redemption on November 30, 2020, the Company anticipates that the remaining outstanding warrants of the Company will consist of approximately 8.5 million Sponsor Warrants, exercisable for approximately 4.25 million shares of Class A Common Stock, which are currently only held by 16 warrant holders.
The holders of the remaining Sponsor Warrants have the right to exercise their warrants for cash at a price of
Given the limited number of warrant holders remaining after the Redemption, and the Company's right to potentially redeem transferred warrants, the Company believes that trading activity in the warrants will be limited following the Redemption, which could negatively affect the liquidity of the warrants. Based on these considerations, combined with the costs associated with the continued listing of the warrants, the Company believes that continued listing of the warrants is not necessary. On November 13, 2020, the Board of Directors of the Company determined that it is in the best interests of the Company to voluntarily withdraw the listing of the remaining warrants from Nasdaq following the Redemption.
Accordingly, on November 19, 2020, the Company notified Nasdaq of its intent to withdraw the warrants from listing on Nasdaq. The Company intends to file a Form 25 with the SEC on November 30, 2020 relating to the warrants, with the delisting to be effective ten days thereafter.
About Purple
Purple is a digitally-native vertical brand with a mission to help people feel and live better through innovative comfort solutions. We design and manufacture a variety of innovative, premium, branded comfort products, including mattresses, pillows, cushions, frames, sheets and more. Our products are the result of over 25 years of innovation and investment in proprietary and patented comfort technologies and the development of our own manufacturing processes. Our proprietary gel technology, Hyper-Elastic Polymer®, underpins many of our comfort products and provides a range of benefits that differentiate our offerings from other competitors' products. We market and sell our products through our direct-to-consumer online channels, traditional retail partners, third-party online retailers and our owned retail showrooms. For more information on Purple, visit purple.com.
Investor Contact:
Brendon Frey, ICR
brendon.frey@icrinc.com
203-682-8200
Purple Innovation, Inc.
Misty Bond
Director of Purple Communications
misty.b@purple.com
385-498-1851
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SOURCE Purple Innovation, Inc.
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