LEHI, Utah, Nov. 19, 2020 /PRNewswire/ -- Purple Innovation,
Inc. (NASDAQ: PRPL) ("the Company"), the leader in comfort
innovation and the creator of the renowned Purple® Mattress,
announced that it has notified the Nasdaq Stock Market of its
intention to voluntarily withdraw the Nasdaq listing of its
warrants to purchase common stock (NASDAQ: PRPLW) that will remain
outstanding following the completion of the Company's previously
announced redemption of certain outstanding warrants. The listing
of the Company's Class A common stock, which is traded on Nasdaq
under the ticker symbol "PRPL," will not be affected by the
delisting of the Company's warrants.
The company currently has outstanding (i) warrants that were
issued in the initial public offering of the Company's predecessor
(the "Public Warrants"), (ii) warrants that were issued in a
private placement (the "Sponsor Warrants"), and (iii) warrants that
were issued to certain lenders in connection with the closing of
the Amended and Restated Credit Agreement dated February 26, 2019 (the "Incremental Loan
Warrants"). The Public Warrants and Sponsor Warrants are listed on
The Nasdaq Stock Market and currently trade under the symbol
"PRPLW."
As previously announced, the Company provided notice to the
holders of the Public Warrants and the Incremental Loan Warrants
that their warrants will be redeemed in accordance with the terms
of such warrants on November 30, 2020
(the "Redemption").
After the effectiveness of the Redemption on November 30, 2020, the Company anticipates that
the remaining outstanding warrants of the Company will consist of
approximately 8.5 million Sponsor Warrants, exercisable for
approximately 4.25 million shares of Class A Common Stock, which
are currently only held by 16 warrant holders.
The holders of the remaining Sponsor Warrants have the right to
exercise their warrants for cash at a price of $11.50 per share or on a cashless basis at any
time. If holders of the Sponsor Warrants subsequently transfer
their warrants, other than to certain permitted transferees, those
transferred warrants would be subject to redemption by the Company
provided that the conditions for redemption are satisfied.
Given the limited number of warrant holders remaining after the
Redemption, and the Company's right to potentially redeem
transferred warrants, the Company believes that trading activity in
the warrants will be limited following the Redemption, which could
negatively affect the liquidity of the warrants. Based on these
considerations, combined with the costs associated with the
continued listing of the warrants, the Company believes that
continued listing of the warrants is not necessary. On November 13, 2020, the Board of Directors of the
Company determined that it is in the best interests of the Company
to voluntarily withdraw the listing of the remaining warrants from
Nasdaq following the Redemption.
Accordingly, on November 19, 2020,
the Company notified Nasdaq of its intent to withdraw the warrants
from listing on Nasdaq. The Company intends to file a Form 25 with
the SEC on November 30, 2020 relating
to the warrants, with the delisting to be effective ten days
thereafter.
About Purple
Purple is a digitally-native vertical brand with 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
over 25 years of innovation and investment in proprietary and
patented comfort technologies and the development of our own
manufacturing processes. Our proprietary gel technology,
Hyper-Elastic Polymer®, 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 owned retail
showrooms. For more information on Purple,
visit purple.com.
Investor Contact:
Brendon
Frey, ICR
brendon.frey@icrinc.com
203-682-8200
Purple Innovation, Inc.
Misty Bond
Director of Purple Communications
misty.b@purple.com
385-498-1851
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SOURCE Purple Innovation, Inc.