RumbleOn, an e-commerce company for pre-owned vehicles, has announced that it is proposing to offer and sell, subject to market conditions, shares of its class B common stock in an underwritten public offering.
RumbleOn expects to grant the underwriter a 30-day option to purchase up to an additional 15 percent of the shares of class B common stock offered in the public offering to cover over-allotments, if any. All of the class B common stock is being offered by the company.
In addition, certain convertible bond holders have proposed to exchange up to $25 million of the company’s 6.75 percent convertible senior notes due 2024 for new 6.75 percent convertible senior notes due in 2025 and purchase up to $7.5 million of additional new notes.
Each of the proposed public offering and note exchange are contingent on the successful completion of both.
RumbleOn intends to use the net proceeds from the offering and the note exchange for working capital and general corporate purposes, which may include further technology development, increased spending on marketing and advertising and capital expenditures necessary to further grow the business.
The final terms of the offering will depend on market and other conditions at the time of pricing, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
