Clarus Corporation Raises $11.5 Million From Existing Investors to Bolster Financial Strength and Support Future Growth
September 25 2020 - 3:21PM
Clarus Corporation (NASDAQ: CLAR) (“Clarus” and/or the “Company”),
a company focused on the outdoor and consumer industries, announced
today that it has entered into an agreement with three of its top
10 investors (the “Investors”) for the sale of 900,000 registered
shares of the Company’s common stock at $12.75 for total proceeds
of approximately $11.5 million.
The Investors—Brown Advisory, Greenhouse Funds and TT
Investimentos— have each determined to increase their investment in
recognition of management’s past execution and in support of the
Company’s long‐term growth strategy. The net proceeds from this
sale will be used for working capital and general corporate
purposes.
“As we evaluate new market opportunities to facilitate our
long‐term growth strategy, we believe that our strong balance sheet
gives us greater optionality within our capital structure,” said
John Walbrecht, president of Clarus. “This strategic financing from
three of our top 10 shareholders is expected to enhance our
liquidity and strengthen our market position. Even before this
transaction, we anticipate generating strong free cash flows and we
remain on track to be nearly debt‐free at year end. We are grateful
to our shareholders for their continued support as we continue to
seek to preserve our brands’ equity and execute on our innovate and
accelerate playbook across our portfolio.”
About Clarus CorporationHeadquartered in Salt
Lake City, Utah, Clarus Corporation is a leading developer,
manufacturer and distributor of best‐in class outdoor equipment and
lifestyle products focused on the climb, ski, mountain, and sport
markets. With a strong reputation for innovation, style, quality,
design, safety and durability, Clarus’ portfolio of iconic brands
includes Black Diamond®, Sierra®, PIEPS®, and SKINourishment® sold
through specialty and online retailers, distributors and original
equipment manufacturers throughout the U.S. and internationally.
For additional information, please visit www.claruscorp.com or the
brand websites at www.blackdiamondequipment.com,
www.sierrabullets.com, or www.pieps.com.
Forward‐Looking StatementsPlease note that in
this press release we may use words such as “appears,”
“anticipates,” “believes,” “plans,” “expects,” “intends,” “future,”
and similar expressions which constitute forward‐looking statements
within the meaning of the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward‐looking
statements are made based on our expectations and beliefs
concerning future events impacting the Company and therefore
involve a number of risks and uncertainties. We caution that
forward‐looking statements are not guarantees and that actual
results could differ materially from those expressed or implied in
the forward‐looking statements. Potential risks and uncertainties
that could cause the actual results of operations or financial
condition of the Company to differ materially from those expressed
or implied by forward‐looking statements in this release include,
but are not limited to, the overall level of consumer demand on our
products; general economic conditions and other factors affecting
consumer confidence, preferences, and behavior; disruption and
volatility in the global currency, capital, and credit markets; the
financial strength of the Company's customers; the Company's
ability to implement its business strategy, the ability of the
Company to execute and integrate acquisitions; changes in
governmental regulation, legislation or public opinion relating to
the manufacture and sale of bullets and ammunition by our Sierra
segment, and the possession and use of firearms and ammunition by
our customers; the Company’s exposure to product liability or
product warranty claims and other loss contingencies; disruptions
and other impacts to the Company’s business, as a result of the
COVID‐19 global pandemic and government actions and restrictive
measures implemented in response; stability of the Company’s
manufacturing facilities and suppliers, as well as consumer demand
for our products, in light of disease epidemics and health‐related
concerns such as the COVID‐19 global pandemic; the impact that
global climate change trends may have on the Company and its
suppliers and customers; the Company's ability to protect patents,
trademarks and other intellectual property rights; any breaches of,
or interruptions in, our information systems; fluctuations in the
price, availability and quality of raw materials and contracted
products as well as foreign currency fluctuations; our ability to
utilize our net operating loss carryforwards; changes in tax laws
and liabilities, tariffs, legal, regulatory, political and economic
risks; and the Company’s ability to declare a dividend. More
information on potential factors that could affect the Company's
financial results is included from time to time in the Company's
public reports filed with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10‐K, Quarterly
Reports on Form 10‐Q, and Current Reports on Form 8‐K. All
forward‐looking statements included in this press release are based
upon information available to the Company as of the date of this
press release, and speak only as of the date hereof. We assume no
obligation to update any forward‐looking statements to reflect
events or circumstances after the date of this press release.
Company Contact:
John C. WalbrechtPresidentTel
1‐801‐993‐1344john.walbrecht@claruscorp.comorAaron J. KuehneChief
Administrative Officer andChief Financial OfficerTel
1‐801‐993‐1364aaron.kuehne@claruscorp.com
Investor Relations:
Gateway Investor RelationsCody SlachTel
1‐949‐574‐3860CLAR@gatewayir.com
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