Purple Innovation, Inc. Announces Closing of Secondary Public Offering of Class A Common Stock and Full Exercise of the Underwriter's Over-Allotment Option

Rhea-AI Summary

Purple Innovation, Inc. (NASDAQ: PRPL) announced the closing of a secondary public offering of 13,600,000 shares of Class A common stock sold by InnoHold, LLC. This includes an underwriter's additional purchase option fully exercised for 1,773,913 shares, priced at $18.50 per share, generating gross proceeds of approximately $251.6 million for the Selling Stockholder. Purple did not offer any shares and therefore received no proceeds from this transaction. BofA Securities acted as the sole book-running manager.

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• None.

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• No proceeds were received by Purple from the offering, limiting potential capital for growth or operations.

LEHI, Utah, Sept. 14, 2020 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) ("Purple"), the leader in comfort innovation and the creator of the renowned Purple® Mattress, today announced the closing of the previously announced underwritten secondary public offering of 13,600,000 shares of its Class A common stock sold by InnoHold, LLC (the "Selling Stockholder"), which includes the full exercise of the underwriter's option to purchase up to 1,773,913 additional shares, at a price of $18.50 per share, for total gross proceeds to the Selling Stockholder of approximately $251.6 million, before deducting underwriting discounts and commissions. Purple did not sell any shares of Class A common stock in the offering and did not receive any proceeds from the offering.

BofA Securities acted as the sole book-running manager for the offering.

Copies of the prospectus may be obtained on the SEC's website, www.sec.gov, or from BofA Securities, NC1-004-03-43, Attn: Prospectus Department, 200 North College Street, 3rd Floor, Charlotte, North Carolina 28255, Phone (800) 294-1322.

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 the 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.

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, seat and back 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.

Forward Looking Statements

Certain statements made in this release that are not historical facts are "forward looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company's expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Factors that could influence the realization of forward-looking statements include the risk factors outlined in the "Risk Factors" section of the prospectus related to this offering, our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 9, 2020 and our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 11, 2020 and August 14, 2020. Many of these risks and uncertainties have been, and will be, exacerbated by the COVID-19 pandemic and any worsening of the global business and economic environment as a result. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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.

FAQ

What was the price per share in the Purple Innovation secondary offering?

The price per share for the secondary offering was $18.50.

How many shares were sold in Purple's secondary offering?

A total of 13,600,000 shares were sold in the secondary offering.

What were the total gross proceeds from Purple's secondary offering?

The total gross proceeds from the secondary offering were approximately $251.6 million.

Did Purple Innovation receive any proceeds from the secondary public offering?

No, Purple did not receive any proceeds from the secondary public offering.

Who managed Purple Innovation's secondary offering?

BofA Securities acted as the sole book-running manager for the offering.