Business
Purple Innovation Special Committee Announces Coliseum Capital's Rejection of Settlement Proposal Designed to Treat All Shareholders Fairly
Special Committee's Most Recent Proposal Would Have Given Coliseum the Right to Identify Half of the Non-Management Directors Coliseum Continues to Insist on
About this update from Purple Innovation, Inc.
[{"type":"text","content":"Special Committee's Most Recent Proposal Would Have Given Coliseum the Right to Identify Half of the Non-Management Directors\nColiseum Continues to Insist on Control of Company's Board \nLEHI, Utah, March 16, 2023 /PRNewswire/ -- The Special Committee (the \"Special Committee\") of the Board of Directors (the \"Board\") of Purple Innovation, Inc. (NASDAQ: PRPL) (\"Purple\" or the \"Company\"), a comfort innovation company known for creating the \"World's First No Pressure® Mattress,\" today announced that Coliseum Capital Management, LLC (\"Coliseum\") has rejected the Special Committee's most recent settlement proposal put forth on March 9, 2023. Coliseum owns approximately 44.7% of Purple, with the remaining shares owned by public market investors (\"Public Shareholders\").\n\n \n \n \n \n \n \n\n \n\"In response to Coliseum's multiple attempts to take over the Company without the payment of an adequate control premium, the Special Committee has been seeking a resolution that serves the best interests of all shareholders. We would like to ensure that the Public Shareholders, who own approximately 55% of Purple, continue to have influence over the Company and a voice in its governance,\" said Dawn Zier, Chair of the Special Committee of the Purple Board of Directors. \"Unfortunately, Coliseum has rejected our proposal, which provided that Coliseum-nominated directors would fill three of the six non-management director seats on the Purple Board, giving them influence over the Board in proportion to their ownership stake in the Company. We will continue to work towards reaching a solution that treats all parties – including Coliseum – fairly.\"\nIn September 2022, Coliseum sought to buy the stock of Purple that it did not already own, at a price the Special Committee continues to believe does not reflect the long-term value of the Company. Only a few days after the Special Committee publicly announced that it had rejected Coliseum's acquisition proposal, Coliseum disclosed its intention to nominate a competing slate of director candidates at the Company's 2023 annual meeting of shareholders (the \"2023 Annual Meeting\"). Since then, the Special Committee has made several settlement proposals to Coliseum, culminating in the March 9th proposal, all of which Coliseum has rejected.\nThe Special Committee's settlement proposal includ...