Purple Innovation, Inc. Announces Pricing of Secondary Public Offering of Class A Common Stock

Rhea-AI Summary

Purple Innovation, Inc. (NASDAQ: PRPL) announced the pricing of a secondary public offering of 11,826,087 shares of Class A common stock at $18.50 per share, to be sold by InnoHold, LLC. The underwriter has a 30-day option to purchase an additional 1,773,913 shares at the same price. The offering is expected to close on September 14, 2020. Purple will not receive any proceeds from this offering, as all net proceeds will go to the Selling Stockholder. BofA Securities is the sole book-running manager.

Positive

• The offering provides liquidity for the Selling Stockholder.
• The potential for additional funds if the underwriter exercises its option to purchase more shares.

Negative

• Purple will not benefit financially from the secondary offering.
• Possible dilution of shares for existing shareholders if additional shares are sold.

LEHI, Utah, Sept. 9, 2020 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) ("Purple"), the leader in comfort innovation and the creator of the renowned Purple® Mattress, today announced the pricing of an underwritten secondary public offering of 11,826,087 shares of its Class A common stock to be sold by InnoHold, LLC (the "Selling Stockholder"). The shares of Class A common stock are being sold at a price of $18.50 per share.  The underwriter has a 30-day option period to purchase up to 1,773,913 additional shares of Class A Common Stock from the Selling Stockholder at the same price per share. The offering is expected to close on September 14, 2020, subject to customary closing conditions.

The Selling Stockholder will receive all of the net proceeds from the offering. Purple is not selling any shares of Class A common stock in the offering and will not receive any proceeds from the offering, including from any exercise by the underwriter of its option to purchase additional shares from the Selling Stockholder.

BofA Securities is acting as the sole book–running manager for the offering.

A registration statement (including a prospectus) relating to these securities has been filed with the U.S. Securities and Exchange Commission (the "SEC") and has become effective. Before you invest, you should read the prospectus in that registration statement, the final prospectus and other documents filed with the SEC and incorporated by reference therein for more complete information about Purple and this offering. You may obtain these documents free of charge by visiting EDGAR on the SEC's website at www.sec.gov.

The offering is being made only by means of a prospectus, copies of which, when available, may be obtained on the SEC's website, www.sec.gov, or from BofA Securities, NC1–004–03–43, 200 North College Street, 3rd floor, Charlotte, NC 28255–0001, Attn: Prospectus Department, or dg.prospectus_requests@bofa.com.

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. Such forward–looking statements include but are not limited to statements about the proposed offering of shares of Class A common stock by the Selling Stockholder. 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 Reports 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

Media Contact:
Alecia Pulman, ICR
purplePR@icrinc.com
646–277–1200

Purple Innovation, Inc.
Savannah Hobbs
Director of Purple Communications
savannah@purple.com

 

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SOURCE Purple Innovation, Inc.

FAQ

What is the pricing of the Purple Innovation stock offering?

The offering price is set at $18.50 per share.

How many shares are being offered in Purple Innovation's secondary offering?

A total of 11,826,087 shares of Class A common stock are being offered.

When is the expected closing date for Purple Innovation's stock offering?

The offering is expected to close on September 14, 2020.

Who is the underwriter for Purple Innovation's stock offering?

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

Will Purple Innovation receive any proceeds from the offering?

No, Purple will not receive any proceeds from this secondary offering.