RumbleOn Reveals Initial Findings from Its $10 Million Rights Offering and Future Plans

RumbleOn's $10 Million Rights Offering: Preliminary Results and Future Directions

RumbleOn, Inc. (NASDAQ: RMBL), a significant player in the powersports retail sector, has recently shared preliminary outcomes from its fully backstopped registered rights offering totaling $10 million. This offering specifically targeted shares of the Company’s Class B common stock with a nominal value of $0.001 per share. The subscription period for this rights offering concluded at 5:00 p.m. ET on December 12, 2024, marking a crucial milestone for the company.

Subscription Success

During this subscription window, RumbleOn saw demand for an impressive 2,043,011 shares of Class B common stock, which were priced at $4.18 each. These shares are scheduled for distribution to eligible stockholders around December 17, 2024. This high level of interest indicates a robust investor confidence in RumbleOn’s future prospects and operational strategies.

Despite the successful subscriptions, not all shares were purchased under this offering. The company has engaged Stone House Capital Management, LLC, as a standby purchaser, which has committed to acquiring any unsubscribed shares. This measure serves to bolster the offering even further, ensuring that all potential shares reach willing investors. Preliminary assessments suggest that Stone House will acquire approximately 349,333 shares to round out the offering.

Financial Implications

Total net proceeds from both the rights offering and the associated backstop private placement are projected to be around $9.0 million. RumbleOn plans to leverage these funds for various corporate necessities, which may encompass repaying existing convertible senior promissory notes that are due shortly. This strategic financial maneuvering is critical as RumbleOn aims to meet additional capital financing commitments stemming from a recent modification to their credit agreement with Oaktree, a renowned investment firm.

Looking Ahead

As the final results of the rights offering are still pending, RumbleOn is preparing to file a Current Report on Form 8-K by approximately December 17, 2024, to disclose these updates fully. After completing the rights offering and the standby placement, RumbleOn expects its total outstanding Class B common stock will reach roughly 37,713,298 shares.

About RumbleOn

Operating within the United States, RumbleOn has established itself as the largest powersports retail group based on reported revenues and sales figures. Their portfolio includes over 500 franchises, showcasing a variety of products from 50 different brands. They are recognized for not only selling both new and pre-owned powersports vehicles but also for providing related products and services, underscoring their position as a leader in the industry. The company emphasizes a strong customer-centric approach, utilizing innovative strategies to acquire pre-owned vehicles directly from consumers through their RideNowCashOffer program.

For more details about RumbleOn’s offerings and operations, visit rumbleon.com.

Forward-Looking Statements Warning

It is essential to note that the information in this release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These statements are contingent upon several factors and uncertainties that may cause actual results to diverge significantly from those projected herein. RumbleOn disclaims any obligation to update these forward-looking statements unless mandated by law, reinforcing their commitment to providing stakeholders with accurate and current information about their financial activities.