Business
Aterian Announces Pricing of $40 Million Private Placement
NEW YORK, June 10, 2021 (GLOBE NEWSWIRE) -- Aterian, Inc. (Nasdaq: ATER) (“Aterian” or the “Company”) announced today that it has entered into a securities
About this update from Aterian, Inc.
[{"type":"text","content":"NEW YORK, June 10, 2021 (GLOBE NEWSWIRE) -- Aterian, Inc. (Nasdaq: ATER) (“Aterian” or the “Company”) announced today that it has entered into a securities purchase agreement with several institutional investors for a private placement of the Company’s common stock (the “Private Placement”). The Private Placement is expected to result in gross proceeds to the Company of approximately $40 million before deducting placement agent fees and other transaction-related expenses payable by the Company. Aterian will issue 2,666,667 shares that will be sold at a purchase price of $15.00 per share. “Today we are strengthening our investor base and adding growth capital to drive our accretive M&A strategy. We are continuing to focus on building a diversified portfolio of e-commerce brands leveraging our technology and supply chain platform,” said Yaniv Sarig, Founder and Chief Executive Officer of Aterian. Mr. Sarig continued, “While our industry continues to be affected by the global supply chain crisis, we are determined to pursue additional growth opportunities that will in the longer term drive economies of scale, pricing power and efficiencies across our portfolio once supply chain normalcy is restored. ” Aterian intends to use the net proceeds from the Private Placement for working capital purposes, the conduct of its business and other general corporate purposes, which may include acquisitions, investments in or licenses of complementary products, technologies or businesses, operating expenses and capital expenditures. The Private Placement is expected to close on or about June 15, 2021, subject to the satisfaction of customary closing conditions. A.G.P./Alliance Global Partners is acting as the sole placement agent for the Private Placement. On May 6, 2021, the Company announced its expected full year 2021 net revenue and Adjusted EBITDA guidance (the “Prior Guidance”). As communicated to investors in connection with the Private Placement, the Company continues to be impacted by the global shipping crisis and has experienced stock outs and significantly increased costs relating to its supply chain, logistics and commodity prices. The Company continues to evaluate the Prior Guidance in light of these impacts and other considerations. If these conditions continue or the Company experiences other declines or delays, the Company may wit...