RumbleOn Announces Record Date for Proposed $10.0 Million Rights Offering
RumbleOn announced a $10.0 million registered equity rights offering, setting November 25, 2024, as the record date. Eligible stockholders of Class A and B Common Stock will receive non-transferable subscription rights on a pro rata basis. The subscription price will be set at a 20% discount to either the 30-day or 10-day volume-weighted average price of Class B Common Stock. Stone House Capital Management will act as Backstop Investor, while Mark Tkach and William Coulter will serve as Supporting Investors, all committing to exercise their pro rata subscription rights.
RumbleOn ha annunciato un
RumbleOn anunció una oferta de derechos de capital registrado de 10,0 millones de dólares, estableciendo el 25 de noviembre de 2024 como la fecha de registro. Los accionistas elegibles de acciones comunes de Clase A y B recibirán derechos de suscripción no transferibles de manera proporcional. El precio de suscripción se establecerá con un descuento del 20% respecto al precio promedio ponderado por volumen de 30 días o de 10 días de las acciones comunes de Clase B. Stone House Capital Management actuará como Inversor de Respaldo, mientras que Mark Tkach y William Coulter se desempeñarán como Inversores de Apoyo, todos comprometiéndose a ejercer sus derechos de suscripción proporcionales.
럼블온(RumbleOn)은 1천만 달러에 해당하는 등록 주식 권리 공모를 발표하며, 2024년 11월 25일을 기록일로 정했습니다. 적격 주주는 클래스 A 및 B 일반주식 소유자에게 비양도성 구독 권리가 비례 배분됩니다. 구독 가격은 클래스 B 일반주식의 30일 또는 10일 거래량 가중 평균 가격의 20% 할인에 설정됩니다. 스톤 하우스 캐피탈 매니지먼트(Stone House Capital Management)는 백스톱 투자자로 활동하며, 마크 타흐(Mark Tkach)와 윌리엄 컬터(William Coulter)는 모든 비례 구독 권리를 행사하기로 약속한 지원 투자자로 활동합니다.
RumbleOn a annoncé une offre de droits de capitaux enregistrés de 10,0 millions de dollars, fixant le 25 novembre 2024 comme date d'enregistrement. Les actionnaires éligibles des actions ordinaires de classe A et B recevront des droits de souscription non transférables sur une base pro-rata. Le prix de souscription sera fixé avec une remise de 20% par rapport au prix moyen pondéré par volume des actions ordinaires de classe B sur 30 jours ou 10 jours. Stone House Capital Management agira en tant qu'investisseur de soutien, tandis que Mark Tkach et William Coulter serviront d'investisseurs soutenants, tous s'engageant à exercer leurs droits de souscription proportionnels.
RumbleOn gab eine registrierte Eigenkapitalrechtsangebot in Höhe von 10,0 Millionen Dollar bekannt und setzte den 25. November 2024 als Stichtag fest. Berechtigte Aktionäre der Stammaktien der Klassen A und B erhalten unveräußbare Bezugsrechte auf pro-rata-Basis. Der Bezugspreis wird mit einem 20%igen Rabatt auf den volumengewogenen Durchschnittspreis der Klasse B-Stammaktien der letzten 30 oder 10 Tage festgelegt. Stone House Capital Management wird als Backstop-Investor tätig sein, während Mark Tkach und William Coulter als unterstützende Investoren agieren, die sich alle verpflichten, ihre pro-rata-Berechtigungsrechte auszuüben.
- Secured $10.0 million potential capital raise through rights offering
- Obtained backstop commitment ensuring full subscription
- Supporting investors committed to exercise their subscription rights
- Potential dilution for existing shareholders
- 20% discount to market price indicates unfavorable financing terms
- Need for additional capital suggests financial pressure
Insights
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The pricing mechanism, taking the lower of two VWAP calculations with a
Under the terms of the Rights Offering, the Company expects to distribute non-transferable subscription rights (the "Subscription Rights") to each holder of its Class A Common Stock and Class B Common Stock (together, the "Eligible Stockholders") as of the Record Date. All Eligible Stockholders as of the Record Date will have the opportunity to participate in the proposed Rights Offering on a pro rata basis. Each Eligible Stockholder will receive one Subscription Right per share of the Company's Class A Common Stock and Class B Common Stock held by such Eligible Stockholder as of the Record Date.
As previously disclosed, on November 11, 2024, the Company entered into a binding term sheet (the "Rights Offering Term Sheet") related to the Rights Offering with Stone House Capital Management, LLC (together with its affiliates, the "Backstop Investor"), and Mark Tkach and William Coulter (each, a "Supporting Investor," and together with the Backstop Investor, the "Investors") pursuant to which the Company has agreed that the subscription price to be paid upon exercise of the Subscription Rights will be the lower of a (i)
Pursuant to the Rights Offering Term Sheet, the Backstop Investor has agreed to enter into a standby purchase agreement with the Company (the "Backstop Agreement") pursuant to which the Backstop Investor will be required to (i) exercise its right to purchase all shares of Class B Common Stock available from the full exercise of the Backstop Investor's (or its affiliates' and related parties') pro rata subscription rights prior to the expiration date of the Rights Offering and (ii) if and only if the Rights Offering is not fully subscribed at the expiration date, all shares of Class B Common Stock included in the Rights Offering that remain unsubscribed for at the expiration date at the same Subscription Price and on the same terms and conditions as other subscribers in the Rights Offering.
Pursuant to the Rights Offering Term Sheet, each of the Supporting Investors has agreed to enter into support agreements (each, a "Support Agreement") with the Company at substantially the same time as the Backstop Agreement. Pursuant to the Support Agreements, each Supporting Investor will agree to exercise its right to purchase all shares of Class B Common Stock available from the full exercise of such Supporting Investor's (or its affiliates' and related parties') pro rata subscription rights in the Rights Offering.
Other Important Information
The Rights Offering is expected to be made pursuant to the Company's effective shelf registration statement on Form S-3, filed with the SEC on August 30, 2024 and declared effective on September 10, 2024, and a prospectus supplement containing the detailed terms of the Rights Offering to be filed with the SEC. The information in this press release is not complete and is subject to change. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any offer, solicitation or sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful under the securities laws of such state or jurisdiction. The Rights Offering will be made only by means of a prospectus and a related prospectus supplement. Copies of the prospectus and related prospectus supplement, when they become available, will be distributed to all eligible stockholders as of the Rights Offering record date and may also be obtained free of charge at the website maintained by the SEC at www.sec.gov or by contacting the information agent for the Rights Offering.
About RumbleOn
RumbleOn, Inc. (NASDAQ - RMBL), operates through two operating segments: our Powersports dealership group and Wholesale Express, LLC, an asset-light transportation services provider focused on the automotive industry. Our Powersports group is the largest powersports retail group in
For more information on RumbleOn, please visit rumbleon.com.
Cautionary Note on Forward-Looking Statements
The Company's press release contains statements that constitute "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, those regarding the Company's plans to launch a Rights Offering, the anticipated final terms, timing and completion of the proposed Rights Offering, and the use of proceeds from the proposed Rights Offering. Forward-looking statements generally can be identified by words such as "anticipates," "believes," "continues," "could," "estimates," "expects," "intends," "hopes," "may," "plan," "possible," "potential," "predicts," "projects," "should," "targets," "would" and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from current expectations and beliefs, including, but not limited to, risks and uncertainties related to: whether the proposed transactions will be completed in a timely manner, or at all; the risk that all of the closing conditions for the proposed Rights Offering are not satisfied; the occurrence of any event, change or other circumstance that could cause the Company not to proceed with the Rights Offering; the determination of the final terms of the proposed Rights Offering; the satisfaction of customary closing conditions related to the proposed Rights Offering; risks related to the diversion of management's attention from RumbleOn's ongoing business operations; the impact of general economic, industry or political conditions in
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SOURCE RumbleOn
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