RumbleOn, Inc. announced on December 13, 2024, the preliminary results of its $10.0 million fully backstopped registered equity rights offering. The subscription period for the offering expired on December 12, 2024.
The rights offering resulted in subscriptions to purchase 2,043,011 shares of Class B common stock at a price of $4.18 per share. Based on these preliminary results, the Standby Purchaser, Stone House Capital Management, LLC, is expected to purchase 349,333 unsubscribed shares of Class B common stock at the same subscription price.
The company estimates the net proceeds from the rights offering and the backstop private placement to be approximately $9.0 million. These proceeds are intended for general corporate purposes, including the repayment of convertible senior notes due January 1, 2025, and to fulfill capital financing obligations under the credit agreement with Oaktree.
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