Business
Purple Innovation Announces Voluntary Delisting of Warrants
LEHI, Utah, Nov. 19, 2020 /PRNewswire/ -- Purple Innovation, Inc. (NASDAQ: PRPL) ("the Company"), the leader in comfort innovation and the creator of the
About this update from Purple Innovation, Inc.
[{"type":"text","content":"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.\n\n \n \n \n \n \n \n\n \nThe 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.\"\nAs 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\").\nAfter 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.\nThe 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.\nGiven the limited number of warrant holders remaining after the Redemption, and the Company's right to potentially redeem...