Purple Innovation Plunges After Pricing Equity Offering At 20% Discount

Purple Innovation Inc PRPL has priced its public offering of 13.4 million shares at a public offering price of $4.50 per share.
The offer price represents a 20.2% discount to the company’s closing price on Feb. 8, 2023.
The underwriters have a 30-day option period to purchase up to 2 million additional shares from the company at the public offering price.
The gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses, are expected to be $60.3 million.
The company intends to use net proceeds from the offering to discharge outstanding indebtedness.
The offering is expected to close on Feb. 13, 2023.
Price Action: PRPL shares are trading lower by 17.63% at $4.65 in premarket on the last check Thursday.