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Sonder Holdings Inc. Provides Update on Preferred Equity Transaction and Announces Executive Leadership Transitions

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Sonder Holdings (NASDAQ: SOND) announced progress on its convertible preferred equity transaction, with $27.5 million of the total $43 million already purchased and the remainder expected soon. Combined with previous balance sheet actions, this will enhance liquidity by approximately $146 million.

The company also announced key executive departures: CFO Dominique Bourgault (effective Dec 2), Chief Accounting Officer Adam Bowen (effective Dec 31), and Chief Legal Officer Katherine Potter (effective Nov 22). A search for a new CFO is underway, while Vanessa Barmack will serve as interim General Counsel.

Sonder has completed the first phase of its Marriott International integration and is now current on all financial reporting, regaining full Nasdaq compliance.

Sonder Holdings (NASDAQ: SOND) ha annunciato progressi nella sua transazione di azioni privilegiate convertibili, con 27,5 milioni di dollari sui 43 milioni totali già acquistati e il resto atteso a breve. Combinato con le azioni precedenti di bilancio, ciò aumenterà la liquidità di circa 146 milioni di dollari.

L'azienda ha inoltre annunciato le dimissioni di importanti dirigenti: il CFO Dominique Bourgault (efficace dal 2 dicembre), il Chief Accounting Officer Adam Bowen (efficace dal 31 dicembre) e il Chief Legal Officer Katherine Potter (efficace dal 22 novembre). È in corso una ricerca per un nuovo CFO, mentre Vanessa Barmack farà da General Counsel ad interim.

Sonder ha completato la prima fase della sua integrazione con Marriott International ed è ora attuale su tutta la rendicontazione finanziaria, riacquistando la piena conformità al Nasdaq.

Sonder Holdings (NASDAQ: SOND) anunció avances en su transacción de acciones preferentes convertibles, con 27,5 millones de dólares de un total de 43 millones ya adquiridos y se espera que el resto llegue pronto. Combinado con acciones previas de balance, esto mejorará la liquidez en aproximadamente 146 millones de dólares.

La compañía también anunció la salida de ejecutivos clave: el CFO Dominique Bourgault (efectivo el 2 de diciembre), el Chief Accounting Officer Adam Bowen (efectivo el 31 de diciembre) y la Chief Legal Officer Katherine Potter (efectivo el 22 de noviembre). Se está llevando a cabo una búsqueda para un nuevo CFO, mientras que Vanessa Barmack se desempeñará como Consejera General interina.

Sonder ha completado la primera fase de su integración con Marriott International y ahora está al día con todos los informes financieros, recuperando la plena conformidad con Nasdaq.

손더 홀딩스 (NASDAQ: SOND)는 전환우선주 거래의 진전을 발표했으며, 총 4,300만 달러 중 2,750만 달러가 이미 매입되었고 나머지는 곧 구매될 예정입니다. 이전 재무 조치와 결합하여 약 1억 4,600만 달러의 유동성이 개선될 것입니다.

회사는 또한 주요 임원이 자리를 떠날 것이라고 발표했습니다: CFO 도미니크 부르고(12월 2일 발효), 최고 회계 책임자 아담 보웬(12월 31일 발효), 최고 법률 책임자 카서린 포터(11월 22일 발효). 새로운 CFO를 찾는 작업이 진행 중이며, 바네사 바르막이 임시 법률 고문으로 활동할 것입니다.

손더는 메리어트 인터내셔널과의 통합 첫 단계를 완료했으며, 모든 재무 보고서를 최신으로 유지하고 있습니다. 나스닥의 완전한 준수를 회복했습니다.

Sonder Holdings (NASDAQ: SOND) a annoncé des progrès dans sa transaction d'actions privilégiées convertibles, avec 27,5 millions de dollars des 43 millions totaux déjà achetés et le reste attendu prochainement. Associé aux actions précédentes du bilan, cela renforcera la liquidité d'environ 146 millions de dollars.

L'entreprise a également annoncé le départ de dirigeants clés : le CFO Dominique Bourgault (efficace le 2 décembre), le Chief Accounting Officer Adam Bowen (efficace le 31 décembre) et la Chief Legal Officer Katherine Potter (efficace le 22 novembre). Une recherche pour un nouveau CFO est en cours, tandis que Vanessa Barmack servira de Conseillère Juridique par intérim.

Sonder a complété la première phase de son intégration avec Marriott International et est maintenant à jour sur tous les rapports financiers, retrouvant ainsi une conformité totale avec le Nasdaq.

Sonder Holdings (NASDAQ: SOND) hat Fortschritte bei seiner Transaktion von wandelbaren Vorzugsaktien bekanntgegeben, bei der bereits 27,5 Millionen Dollar von insgesamt 43 Millionen Dollar erworben wurden und der Rest bald erwartet wird. In Kombination mit früheren Bilanzmaßnahmen wird dies die Liquidität um etwa 146 Millionen Dollar erhöhen.

Das Unternehmen gab zudem den Rücktritt wichtiger Führungskräfte bekannt: CFO Dominique Bourgault (wirksam ab dem 2. Dezember), Chief Accounting Officer Adam Bowen (wirksam ab dem 31. Dezember) und Chief Legal Officer Katherine Potter (wirksam ab dem 22. November). Es wird nach einem neuen CFO gesucht, während Vanessa Barmack interimistisch als General Counsel tätig sein wird.

Sonder hat die erste Phase seiner Integration mit Marriott International abgeschlossen und ist nun auf dem neuesten Stand mit allen Finanzberichterstattungen und hat die volle Nasdaq-Konformität wiedererlangt.

Positive
  • Enhanced liquidity profile by ~$146 million through preferred equity transaction and balance sheet actions
  • Successfully completed first phase of Marriott International integration
  • Regained full Nasdaq compliance following completion of financial restatements
  • $27.5 million of $43 million preferred equity already secured
Negative
  • Simultaneous departure of three key executives (CFO, CAO, and CLO)
  • Ongoing financial restatement process for 2022 and 2023

Preferred Equity Transaction and Previously Announced Actions Will Enhance Liquidity Profile by ~$146 Million to Support Long-Term Profitable Growth

Dominique Bourgault and Katie Potter to Step Down from Respective Positions; Search Process Underway to Identify Successors

Current on All Financial Reporting Following 2022 and 2023 Restatement; Regains Full Nasdaq Compliance

SAN FRANCISCO, Nov. 08, 2024 (GLOBE NEWSWIRE) -- Sonder Holdings Inc. (NASDAQ: SOND or “Sonder”), a leading global brand of premium, design-forward apartment-style accommodations serving the modern traveler, today announced that the Company has met all required closing conditions and is actively in the process of completing the convertible preferred equity transaction whereby a consortium of investors purchased approximately $43 million of a newly designated series of convertible preferred equity (the “Preferred Equity”). $14.7 million of the $43 million Preferred Equity was purchased on or about August 13, 2024, $12.8 million was purchased on or about November 7, 2024, and the Company expects that the remainder of the Preferred Equity will be purchased in the near term.

The additional liquidity will support the Company’s long-term profitable growth and the integration efforts under the recently announced strategic licensing agreement with Marriott International. With this Preferred Equity transaction, as well as the previously announced balance sheet actions taken, Sonder will enhance its liquidity profile by approximately $146 million to support its long-term profitable growth.

Francis Davidson, Co-Founder and CEO of Sonder, said, “We are making meaningful progress executing against our growth plans, including completing the first phase of our integration with Marriott International with Sonder now listed as a Marriott Bonvoy® brand featured on Marriott International’s direct channels. With closing the second tranche of our preferred equity investment nearly complete, we are moving forward with a significantly stronger balance sheet and access to an additional $146 million in capital.”

Executive Leadership Transitions

Sonder also announced the following changes to its executive leadership team:

  • Dominique Bourgault, Sonder’s Chief Financial Officer, will step down from Sonder to pursue other opportunities, effective December 2, 2024. Adam Bowen, Sonder’s Chief Accounting Officer, will also depart the Company on December 31, 2024. The Company has initiated a search process with a leading search firm to identify a successor for the CFO role.
  • Katherine Potter, Sonder’s Chief Legal and Administrative Officer, will step down from the Company, effective November 22, 2024, to accept another opportunity. Vanessa Barmack, Sonder’s Associate General Counsel, will serve as interim General Counsel and will assume responsibility for the Company’s Legal function.

Davidson continued, “Dom, Katie and Adam have been true partners and each continue to make meaningful contributions to the critical work underway to fortify our financial position and reposition the Company for long-term growth. Sonder has accomplished notable recent milestones across our finance, legal and people functions, and Katie, Dom and Adam have been integral to each and I wish them nothing but the best. With the critical pieces of the transformation behind us and an incredibly talented and deep team, we have full confidence that our transition plans will be seamless and that the future of Sonder is bright.”

Bourgault said, “I am deeply proud of the transformational achievements we have made across the Company and the finance organization to position Sonder for success as it enters the next phase of its growth. I have full confidence in the team’s ability to execute Sonder’s strategy going forward.”

Potter said, “Our legal and people functions have made tremendous strides in the past year and we have successfully supported the initiatives underway across the business, particularly the recently announced transformational transactions. I look forward to seeing all that the team will accomplish in the future.”

As disclosed on November 4, 2024, Sonder filed its quarterly reports on Form 10-Q for the fiscal quarters ended March 31, 2024, and June 30, 2024. With these filings now complete, the Company is now current on all financial reporting following the restatement of Sonder’s 2022 and 2023 financial information and is now in full compliance with all Nasdaq requirements.

About Sonder

Sonder (NASDAQ: SOND) is a leading global brand of premium, design-forward apartments and intimate boutique hotels serving the modern traveler. Launched in 2014, Sonder offers inspiring, thoughtfully designed accommodations and innovative, tech-enabled service combined into one seamless experience. Sonder properties are found in prime locations in over 40 markets, spanning ten countries and three continents. The Sonder app gives guests full control over their stay. Complete with self-service features, simple check-in and 24/7 on-the-ground support, amenities and services at Sonder are just a tap away, making a world of better stays open to all.

To learn more, visit http://www.sonder.com or follow Sonder on InstagramLinkedIn or X.

Download the Sonder app on Apple or Google Play.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based upon current expectations or beliefs, as well as assumptions about future events. Forward-looking statements include all statements that are not historical facts and can generally be identified by terms such as “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” or “will” or similar expressions and the negatives of those terms. These statements include but are not limited to, statements regarding the anticipated benefits and synergies from the strategic licensing agreement with Marriott, improvements in liquidity and profitability, statements about improving Sonder’s balance sheet and long-term profitable growth, and other information concerning Sonder’s financial and operating goals and estimated, possible or assumed future financial or operating results and measures, cash flow, or liquidity. Actual results could differ materially from those expressed in or implied by the forward-looking statements due to a number of risks and uncertainties, including but not limited to the risk that the strategic licensing agreement with Marriott will not provide the anticipated benefits, including uncertainties related to the timing and extent of benefits, synergies, cost savings, and future revenue opportunities; uncertainties associated with Sonder’s liquidity, debt, and capital resources, and the risk that Sonder’s efforts to conserve cash will be unsuccessful and that additional funding or other sources of liquidity will not be available on acceptable terms or at all; the risk that Sonder will be unsuccessful in achieving positive free cash flow; uncertainties about the potential inability to meet Nasdaq’s requirements; uncertainties associated with our preparation of future SEC reports and the related financial statements, including the possibility that additional accounting errors or corrections will be identified; the possibility of additional delays in the filing of future periodic reports; uncertainties related to the purchase of the remaining Preferred Equity in the convertible preferred equity transaction; uncertainties related to our ability to find successors to our resigned executive officers; and the other risks and uncertainties described in Sonder’s SEC reports, including its Current Reports on Form 8-K filed on October 7, 2024, and under the heading “Risk Factors” in its most recent annual report on Form 10-K and quarterly reports on Form 10-Q, which are available at www.sec.gov. The forward-looking statements contained herein speak only as of the date of this press release. Except as required by law, the Company does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this press release.

Contacts:

Investor:
ir@sonder.com

Media:
press@sonder.com

Dan Moore / Tali Epstein
Collected Strategies
Sonder-CS@collectedstrategies.com


FAQ

How much liquidity will Sonder (SOND) gain from the preferred equity transaction and balance sheet actions?

Sonder will enhance its liquidity profile by approximately $146 million through the preferred equity transaction and previously announced balance sheet actions.

Which executives are leaving Sonder (SOND) in November-December 2024?

CFO Dominique Bourgault (effective Dec 2), Chief Accounting Officer Adam Bowen (effective Dec 31), and Chief Legal Officer Katherine Potter (effective Nov 22) are leaving Sonder.

How much of the $43 million preferred equity has Sonder (SOND) already secured?

Sonder has secured $27.5 million of the $43 million preferred equity, with $14.7 million purchased around August 13 and $12.8 million around November 7, 2024.

Has Sonder (SOND) regained Nasdaq compliance in November 2024?

Yes, Sonder has regained full Nasdaq compliance after completing its financial restatements and becoming current on all financial reporting.

Sonder Holdings Inc.

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