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INNOVATE Corp. successfully closed its rights offering, with 5.2 million common stock shares purchased through basic subscription rights and additional shares under over-subscription privilege. Lancer Capital partially backstopped the offering with $15.3 million, purchasing preferred stock. The Company issued 5.3 million new common stock shares at $0.70 per share, raising $3.7 million, and 31.3 thousand preferred stock shares to Lancer Capital for $31.3 million. The total shares outstanding will be 85.2 million, potentially increasing to 129.9 million upon conversion of Lancer Capital's preferred stock. The proceeds will be used for general corporate purposes.
INNOVATE Corp. ha chiuso con successo la sua offerta di sottoscrizione, con 5,2 milioni di azioni ordinarie acquistate tramite diritti di sottoscrizione di base e azioni aggiuntive tramite il diritto di sovrasottoscrizione. Lancer Capital ha parzialmente garantito l'offerta con 15,3 milioni di dollari, acquistando azioni privilegiate. La società ha emesso 5,3 milioni di nuove azioni ordinarie a 0,70 dollari per azione, raccogliendo 3,7 milioni di dollari, e 31,3 mila azioni privilegiate a Lancer Capital per 31,3 milioni di dollari. Il totale delle azioni in circolazione sarà di 85,2 milioni, con la possibilità di aumentare fino a 129,9 milioni alla conversione delle azioni privilegiate di Lancer Capital. I proventi saranno utilizzati per scopi aziendali generali.
INNOVATE Corp. cerró exitosamente su oferta de derechos, con 5,2 millones de acciones ordinarias compradas mediante derechos de suscripción básicos y acciones adicionales bajo el privilegio de sobre-suscripción. Lancer Capital respaldó parcialmente la oferta con 15,3 millones de dólares, adquiriendo acciones preferentes. La compañía emitió 5,3 millones de nuevas acciones ordinarias a 0,70 dólares por acción, recaudando 3,7 millones de dólares, y 31,3 mil acciones preferentes a Lancer Capital por 31,3 millones de dólares. El total de acciones emitidas será de 85,2 millones, pudiendo aumentar a 129,9 millones tras la conversión de las acciones preferentes de Lancer Capital. Los fondos serán utilizados para propósitos corporativos generales.
INNOVATE Corp.는 기본 구독 권리를 통해 구매한 520만 주의 보통주와 초과 구독 권한을 통한 추가 주식을 포함하여 권리 발행을 성공적으로 마쳤습니다. Lancer Capital은 1,530만 달러로 선호주를 구매하며 이 발행을 부분적으로 보증했습니다. 회사는 주당 0.70달러에 530만 주의 새로운 보통주를 발행해 370만 달러를 조성했고, Lancer Capital에게 313만 달러에 31.3천 주의 선호주를 발행했습니다. 총 발행 주식은 8520만 주가 될 것이며, Lancer Capital의 선호주가 전환될 경우 1억 2990만 주로 증가할 수 있습니다. 이 자금은 일반 기업 용도로 사용될 예정입니다.
INNOVATE Corp. a clôturé avec succès son offre de droits, avec 5,2 millions d'actions ordinaires achetées via des droits d'abonnement de base et des actions supplémentaires sous le privilège de sur-souscription. Lancer Capital a partiellement garanti l'offre avec 15,3 millions de dollars, en achetant des actions préférentielles. La société a émis 5,3 millions de nouvelles actions ordinaires à 0,70 dollar par action, levant 3,7 millions de dollars, et 31,3 mille actions préférentielles à Lancer Capital pour 31,3 millions de dollars. Le total des actions en circulation sera de 85,2 millions, pouvant augmenter à 129,9 millions lors de la conversion des actions préférentielles de Lancer Capital. Les produits seront utilisés à des fins corporatives générales.
INNOVATE Corp. hat sein Bezugsrechtsangebot erfolgreich abgeschlossen, wobei 5,2 Millionen Stammaktien über Basiszeichnungsrechte und zusätzliche Aktien über das Überzeichnungsrecht erworben wurden. Lancer Capital hat das Angebot teilweise mit 15,3 Millionen Dollar unterstützt und Vorzugsaktien gekauft. Das Unternehmen gab 5,3 Millionen neue Stammaktien zu 0,70 Dollar pro Aktie aus und sammelte damit 3,7 Millionen Dollar ein, zusätzlich wurden 31.300 Vorzugsaktien an Lancer Capital für 31,3 Millionen Dollar ausgegeben. Die gesamten ausstehenden Aktien werden 85,2 Millionen betragen, mit einer möglichen Erhöhung auf 129,9 Millionen bei der Umwandlung von Lancer Capitals Vorzugsaktien. Die Erlöse werden für allgemeine Unternehmenszwecke verwendet.
Positive
Successful closure of rights offering with significant participation
Lancer Capital's partial backstopping of the offering with $15.3 million
Issuance of 5.3 million new common stock shares at $0.70 per share, raising $3.7 million
Issuance of 31.3 thousand preferred stock shares to Lancer Capital for $31.3 million
Total shares outstanding to be 85.2 million, potentially increasing to 129.9 million upon conversion of Lancer Capital's preferred stock
Proceeds to be utilized for general corporate purposes
Negative
None.
NEW YORK, April 24, 2024 (GLOBE NEWSWIRE) -- INNOVATE Corp. (“INNOVATE” or the “Company”) (NYSE: VATE), a diversified holding company, announced today the closing of its successful rights offering, which expired at 5:00 p.m., New York City time, on April 19, 2024. Pursuant to the terms of the rights offering, 5.2 million shares of common stock are being purchased pursuant to the exercise of basic subscription rights and 0.1 million additional shares of common stock are being purchased under the over-subscription privilege.
In accordance with the Investment Agreement (the “Investment Agreement”) entered into by the Company with Lancer Capital LLC (“Lancer Capital”), an investment fund led by Avram Glazer, the Chairman of the Board of Directors of the Company and the Company’s largest stockholder, Lancer Capital partially backstopped the rights offering in the amount of $15.3 million by purchasing Series C Non-Voting Convertible Participating Preferred Stock, par value $0.001 per share (the “preferred stock”). In total, 15.3 thousand shares of preferred stock at a price of $1,000 per share were issued to Lancer Capital. This includes the approximately 6.3 thousand shares of preferred stock issued in connection with the closing of the rights offering and the 9.0 thousand shares already purchased as part of an equity advance arrangement under the Investment Agreement (the “equity advance”). On March 28, 2024, the Company issued and sold 25.0 thousand shares of the preferred stock to Lancer Capital for an aggregate purchase price of $25.0 million under the equity advance. The remaining 16.0 thousand shares of preferred stock purchased under the equity advance are part of the previously announced concurrent private placement. The preferred stock can be convertible into common stock at the price equivalent to the subscription price under the rights offering contingent on shareholder approval, which will be voted on at the next annual meeting.
In the aggregate, the Company is issuing 5.3 million new shares of common stock at the subscription price of $0.70 per whole share for gross proceeds of $3.7 million to the Company, in addition to 31.3 thousand shares of preferred stock to Lancer Capital for gross proceeds of $31.3 million to the Company. After giving effect to the rights offering, the Company will have 85.2 million shares of common stock issued and outstanding. If approved at the annual meeting, the conversion of the 31.3 thousand shares of preferred stock purchased by Lancer Capital would result in the issuance of an additional 44.7 million shares of common stock.
The Company expects to use the proceeds from the rights offering for general corporate purposes, including debt service and for working capital.
Investors who have participated in the rights offering should expect to see the shares of common stock issued to them in uncertificated book-entry form. Any excess subscription payments received by Computershare Trust Company, N.A. (the "subscription agent") will be returned by the subscription agent to investors, without interest or deduction, through the same method by which they participated in the rights offering.
The rights offering was made pursuant to INNOVATE’s effective shelf registration statement on Form S-3, filed with the SEC on September 29, 2023 and declared effective on October 6, 2023, and a prospectus supplement containing the detailed terms of the rights offering filed with the SEC on March 8, 2024, as amended by that certain Amendment No. 1 to the prospectus supplement, filed with the SEC on March 25, 2024, and further amended by that certain Amendment No. 2 to the prospectus supplement, filed with the SEC on April 9, 2024. This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities (including without limitation the preferred stock issued and sold in the concurrent private placement), 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 was made only by means of a prospectus and a related prospectus supplement, copies of which were distributed to all eligible rights holders 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 INNOVATE
INNOVATE Corp. is a portfolio of best-in-class assets in three key areas of the new economy – Infrastructure, Life Sciences and Spectrum. Dedicated to stakeholder capitalism, INNOVATE employs approximately 4,000 people across its subsidiaries. For more information, please visit: www.INNOVATECorp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release contains, and certain oral statements made by our representatives from time to time may contain, forward-looking statements regarding the rights offering and concurrent private placement, including, among others, statements related to the use of proceeds from the rights offering and other terms of the rights offering, all of which involve risks, assumptions and uncertainties, many of which are outside of the Company's control, and are subject to change. All forward-looking statements speak only as of the date made, and unless legally required, INNOVATE undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Solebury Strategic Communications Anthony Rozmus ir@innovatecorp.com (212) 235-2691
FAQ
What is the outcome of INNOVATE Corp.'s rights offering?
INNOVATE Corp. successfully closed its rights offering.
How many common stock shares were purchased through basic subscription rights?
5.2 million common stock shares were purchased through basic subscription rights.
Who backstopped the rights offering and for how much?
Lancer Capital backstopped the offering with $15.3 million.
How many new common stock shares were issued and at what price?
INNOVATE Corp. issued 5.3 million new common stock shares at $0.70 per share.
What is the total gross proceeds raised from the rights offering?
The rights offering raised $3.7 million from the issuance of common stock and $31.3 million from the issuance of preferred stock.
What will be the total outstanding shares after the rights offering?
The total outstanding shares will be 85.2 million, potentially increasing to 129.9 million upon conversion of Lancer Capital's preferred stock.
How will the proceeds from the rights offering be utilized?
The proceeds will be used for general corporate purposes.
