RumbleOn, Inc. announced on November 26, 2024, the commencement of its $10.0 million fully backstopped registered equity rights offering. The company expects to receive aggregate gross proceeds of $10.0 million, less expenses related to the offering.
The offering involves distributing non-transferable subscription rights to eligible stockholders as of November 25, 2024, to purchase up to 2,392,344 shares of Class B common stock at a price of $4.18 per share. The subscription period is expected to expire on December 12, 2024.
Proceeds from the rights offering are intended for general corporate purposes, including the repayment of the company's 6.75% convertible senior promissory notes due January 1, 2025. The capital raised will also partially satisfy additional financing obligations under a recent amendment to the company's credit agreement with Oaktree.
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