Blue Apron Holdings, Inc. (NYSE: APRN) announced today the
closing of its previously announced $78.0 million equity capital
raise. The subscription period of the rights offering expired at
5:00 p.m., Eastern Time, on October 28, 2021.
“Over the last two years, we worked diligently to execute our
business strategy, with a focus on product variety and providing a
great customer experience,” said Linda Findley, Blue Apron’s
President and Chief Executive Officer. “Now, with this capital
raise, we plan to build on that foundation through product
innovation and effective marketing tactics to attract new customers
and retain our current ones.”
In accordance with the terms of the rights offering,
approximately 6.7 million subscription rights were exercised for
aggregate gross proceeds of $12.3 million, resulting in the
issuance of (i) 1,234,187 shares of Class A common stock, (ii)
warrants to purchase approximately 987,645 shares of Class A common
stock at an exercise price of $15.00 per share, (iii) warrants to
purchase approximately 493,822 shares of Class A common stock at an
exercise price of $18.00 per share, and (iv) warrants to purchase
approximately 246,911 shares of Class A common stock at an exercise
price of $20.00 per share.
Under the terms of the previously announced purchase agreement
with RJB Partners LLC and Matthew B. Salzberg, dated September 15,
2021, RJB Partners LLC purchased $62.7 million of securities on the
same terms as the rights offering, including the remaining $32.7
million of securities offered in the rights offering. This resulted
in the issuance of (i) 6,265,813 shares of Class A common stock,
(ii) warrants to purchase approximately 5,012,354 shares of Class A
common stock at an exercise price of $15.00 per share, (iii)
warrants to purchase approximately 2,506,177 shares of Class A
common stock at an exercise price of $18.00 per share, and (iv)
warrants to purchase approximately 1,253,088 shares of Class A
common stock at an exercise price of $20.00 per share.
Total net proceeds of the capital raise are approximately $73.5
million. Blue Apron intends to use the net proceeds for working
capital and general corporate purposes, including to accelerate its
growth strategy to drive new customers and associated revenue
growth, to build a framework to establish an Environmental Social
and Governance program, and to increase wages, benefits and
training for its hourly employees.
Following the completion of the capital raise, the company has a
total of approximately 31.6 million shares of its common stock
outstanding, excluding the number of shares issuable upon the
future exercise of outstanding warrants.
A registration statement on Form S-3 (File No. 333-259677)
relating to the rights offering was filed with and declared
effective by the Securities and Exchange Commission (the “SEC”).
The rights offering was made only by means of a prospectus, copies
of which can be accessed through the SEC’s website at www.sec.gov.
Additional information regarding the rights offering is set forth
in the prospectus filed with the SEC.
About Blue Apron
Blue Apron’s vision is “better living through better food.”
Launched in 2012, Blue Apron offers fresh, chef-designed recipes
that empower home cooks to embrace their culinary curiosity and
challenge their abilities to see what a difference cooking quality
food can make in their lives. Through its mission to spark
discovery, connection and joy through cooking, Blue Apron
continuously focuses on bringing incredible recipes to its
customers, while minimizing its carbon footprint, reducing food
waste, and promoting diversity and inclusion.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of The Private Securities Litigation Reform Act of
1995. Such forward-looking statements include, but are not limited
to, those regarding the use of proceeds from the capital raise, the
company’s plans for adopting certain environmental, sustainability
and governance changes in connection with the capital raise, and
the company’s plans, strategies, and prospects for its business.
The words “anticipate,” “believe,” “continue,” “could,” “estimate,”
“expect,” “intend,” “hope,” “may,” “plan,” “possible,” “potential,”
“predict,” “project,” “should,” “target,” “would” and similar
expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. Such statements are subject to numerous
important factors, risks and uncertainties that may cause actual
events or results to differ materially from current expectations
and beliefs, including, but not limited to the company’s ability,
including the timing and extent, to successfully support the
acceleration and execution of its growth strategy, cost-effectively
attract new customers and retain existing customers, including its
ability to sustain any increase in demand resulting from both its
growth strategy and the COVID-19 (coronavirus) pandemic, and its
ability to continue to expand its direct-to-consumer product
offerings, and to execute operational efficiency practices; its
expectations regarding its expenses and net revenue and its ability
to grow adjusted EBITDA and to achieve or maintain profitability;
changes in consumer behaviors that could lead to declines in
demand, including as the COVID-19 pandemic’s impact on consumer
behavior, such as frequency of travel, continues to taper; its
ability to attract and retain qualified employees and personnel in
sufficient numbers, both generally and in light of ongoing
nationwide labor shortages; its expectations regarding, and the
stability of, its supply chain, including potential shortages,
interruptions and/or increased costs in the supply or delivery of
ingredients, and parcel and freight carrier interruptions or delays
and/or higher freight or fuel costs, as a result of the COVID-19
pandemic or otherwise; its ability to effectively compete; its
ability to maintain and grow the value of its brand and reputation;
its ability to maintain food safety and prevent food-borne illness
incidents and its susceptibility to supplier-initiated recalls;
general changes in consumer tastes and preferences or in consumer
spending, including as a result of inflation or other negative
economic factors, whether as a result of the COVID-19 pandemic or
otherwise; any material and adverse impact of the COVID-19 pandemic
on its operations and results, such as the need to cancel or shift
customer orders, whether as a result of challenges in employee
recruiting and retention, any prolonged closures, or series of
temporary closures, of one or both of its fulfillment centers, or
supply chain or carrier interruptions or delays; its ability,
including the timing and extent, to sufficiently manage costs and
to fund investments in its operations in amounts necessary to
maintain compliance with financial and other covenants under its
indebtedness while continuing to support the execution and
acceleration of its growth strategy; its ability to comply with
modified or new laws and regulations applying to its business; its
ability to achieve its environmental, sustainability and corporate
governance goals and to adopt its planned corporate governance
reforms, in the anticipated timeframe or at all; its vulnerability
to adverse weather conditions, natural disasters, and public health
crises, including pandemics; its ability to obtain and maintain
intellectual property protection; and other important risk factors
set forth under the caption “Risk Factors” in the Form S-3 filed
with the SEC, in Blue Apron’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2021 and in any other subsequent filings
made with the SEC by Blue Apron. Any forward-looking statements
contained in this press release speak only as of the date hereof,
and Blue Apron specifically disclaims any obligation to update any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20211104006230/en/
Media Muriel Lussier Blue Apron
muriel.lussier@blueapron.com Investors
investor.relations@blueapron.com
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