LEHI, Utah, March 24, 2022 /PRNewswire/ — Purple Innovation, Inc. (NASDAQ: PRPL) (“Purple” or the “Company”), a comfort innovation company known for creating the “world’s first No-Pressure Mattress®, with its proprietary GelFlex™ grid”, today announced the price of an underwritten public offering increased by the Company by 14,000,000 Class A common shares. The underwriter has a 30-day option period to purchase up to 2,100,000 additional Class A common shares of the Company at the same price per share. The offer is expected to close on March 29, 2022subject to customary closing conditions.
Pursuant to the Company’s credit agreement, dated September 3, 2020 and modified from February 28, 2022 and March 23, 2022together with the lenders parties thereto and KeyBank National Association, as administrative agent, the Company will be required to prepay an amount equal to the lesser of the amount outstanding of the revolving loans and the total amount of cash held by the Company Beyond $25 million. The Company has currently borrowed all $55 million available under revolving loans. If, after receiving the net proceeds of the offering, the Company has more than $25 million available cash, the Company will be required to use such excess cash to prepay the outstanding balance of the Revolving Loans, up to the full amount of the outstanding balance. As of the date hereof, the Company has approximately $25 million cash at hand. After satisfying the terms of the credit agreement, the Company intends to use the net proceeds of this offering for working capital and general corporate purposes, which may include working capital, capital expenditures, other corporate expenditures and the acquisition of complementary products, technologies or businesses. The Company currently has no binding agreements or undertakings to enter into such transactions or, except as described above, to make any such principal repayments from the proceeds of this offering.
BofA Securities is acting as sole underwriter to the offering.
The offering is made pursuant to an effective pending registration statement (File No. 333-263621) which was previously filed with the Securities and Exchange Commission (the “SEC”) on March 16, 2022. A preliminary prospectus supplement relating to the offering has been filed with the SEC. Copies of the preliminary prospectus supplement and accompanying prospectus relating to these securities may be obtained from the SEC’s website, www.sec.gov, or from BofA Securities, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, North Carolina 28255-0001, for the attention of the Prospectus department, or [email protected].
This press release does not constitute an offer to sell or the solicitation of an offer to buy, and there will be no sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful before registration or qualification. under the securities laws of such state or territory.
Purple is a digital native vertical brand on 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, cushions, frames, sheets and more. Our products are the result of more than 30 years of innovation and investment in proprietary and patented comfort technologies and the development of our own manufacturing processes. Our proprietary gel technology, the GelFlex™ Grid, 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 own showrooms.
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 do not y limited to statements regarding the closing of the proposed offering of Class A common shares by the Company, the proposed use of the proceeds of the offering and the option to purchase additional shares granted by the Company to the subscriber . 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 beyond the control of the Company, which could lead to actual results or results. differ materially from those discussed in the forward-looking statements. Factors that could influence the making of forward-looking statements include the risk factors described in the “Risk Factors” section of the preliminary prospectus supplement relating to this offering and the accompanying base prospectus, as well as our annual report on Form 10-K filed with the SEC at March 1, 2022as amended by our Annual Report on Form 10-K/A Amendment No. 1 filed with the SEC on March 16, 2022. Many of these risks and uncertainties have been and will be exacerbated by the COVID‐19 pandemic and any resulting deterioration in the global business and economic environment. The Company undertakes no 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.
Violet Innovation, Inc.
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SOURCEPurple Innovation, Inc.