SANTA MONICA, Calif.--(BUSINESS WIRE)--
Leaf Group Ltd. (NYSE:LFGR), a diversified consumer internet company
comprised of several marketplace and media properties, announced today
the pricing of an underwritten registered public offering of 2,933,333
shares of its common stock at a price to the public of $7.50 per share,
for gross proceeds of approximately $22.0 million. In addition, Leaf
Group granted the underwriter a 30-day option to purchase up to an
additional 439,999 shares of its common stock to cover over-allotments,
if any. All shares of common stock sold in the offering are being sold
by Leaf Group. Leaf Group expects to close the offering on or about
February 12, 2018, subject to the satisfaction of customary closing
conditions.
Leaf Group anticipates that the aggregate net proceeds from the offering
will be approximately $20.2 million, after deducting the underwriting
discounts and commissions and estimated offering expenses payable by
Leaf Group, but excluding any exercise of the underwriter’s option to
purchase additional shares of common stock. Leaf Group intends to use
the net proceeds from the offering for working capital and general
corporate purposes. Leaf Group may also use a portion of the net
proceeds to acquire or invest in complementary businesses, products and
technologies, although Leaf Group has no specific agreements,
commitments or understandings to do so at this time.
Craig-Hallum Capital Group is acting as the sole book-running manager
for the offering.
The securities described above are being offered pursuant to a shelf
registration statement on Form S-3 (File No. 333-216226) that was
declared effective by the U.S. Securities and Exchange Commission, or
the SEC, on March 29, 2017. A preliminary prospectus supplement and
accompanying prospectus relating to and describing the terms of the
offering were filed with the SEC on February 5, 2018. The final
prospectus supplement and accompanying prospectus relating to the
offering will be filed with the SEC and, when available, may be obtained
by visiting the SEC’s website at www.sec.gov
or by contacting Craig-Hallum Capital Group LLC, 222 South Ninth Street,
Suite 350, Minneapolis, MN 55402, by telephone at 612-334-6300 or by
email at prospectus@chlm.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities in any state or other jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or other
jurisdiction.
About Leaf Group
Leaf Group Ltd. (NYSE: LFGR) is a diversified consumer internet company
that builds enduring, creator-driven brands that reach passionate
audiences in large and growing lifestyle categories, including art and
design, fitness and wellness, home and décor, do-it-yourself projects
and crafts, amongst others. For more information about Leaf Group, visit www.leafgroup.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. These
include statements regarding, but not limited to, the anticipated
closing of the offering and Leaf Group’s expected uses of the proceeds
from the offering. Forward-looking statements can be identified by the
use of words such as “may,” “will,” “plan,” “should,” “expect,”
“anticipate,” “estimate,” “continue” or comparable terminology.
Forward-looking statements involve risks and uncertainties that could
cause actual results or developments to differ materially from those
indicated due to a number of factors affecting Leaf Group’s operations,
markets, products and services. Leaf Group identifies the principal
risks and uncertainties that impact its performance in its public
reports filed with the SEC, including the “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition” sections
of Leaf Group’s most recent Annual Report on Form 10-K, as may be
supplemented or amended by Leaf Group’s subsequent Quarterly Reports on
Form 10-Q. Forward-looking statements speak only as of the date on which
they are made and Leaf Group assumes no obligation to update any
forward-looking statements.
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Source: Leaf Group Ltd.