RumbleOn Completes Successful $10 Million Rights Offering, Boosts Share Availability

RumbleOn Completes $10 Million Fully Backstopped Rights Offering



RumbleOn, Inc. (NASDAQ: RMBL), a leading player in the powersports retail market, has recently unveiled the final outcomes of its $10 million fully backstopped registered rights offering. This strategic move facilitated the subscription for 2,043,011 shares, which accounts for approximately 85% of the total shares made available at a price point of $4.18 per share. The subscription period formally concluded at 5:00 PM Eastern Time on December 12, 2024, with shares anticipated to be allocated to participating stockholders by December 17, 2024.

The rights offering, designated as an equity increase initiative, aims to bolster RumbleOn’s financial muscle and enhance its capacity for various corporate undertakings. The company has enlisted Stone House Capital Management, LLC as the standby purchaser for the unsubscribed shares, confirming its commitment to guide the offering toward completion. Given that the rights offering did not entirely meet the expected subscriptions, the standby purchaser is slated to acquire 349,333 shares for a total valuation of approximately $1.5 million. This backstop private placement is set to wrap up by December 19, 2024, reinforcing financial confidence in the company’s fiscal strategy.

According to estimates, the net proceeds accrued from both the rights offering and the subsequent backstop private placement are expected to reach around $9 million. These funds are earmarked for paying off the company’s convertible senior promissory notes, currently due by January 1, 2025, alongside fulfilling additional capital financial commitments outlined in a recent credit agreement amendment with Oaktree Capital Management.

Upon concluding the rights offering and the backstop private placement, RumbleOn anticipates having roughly 37,713,298 shares of Class B common stock in circulation. This influx of capital can significantly reshape their business operations, ensuring sustained growth and a more solid foundation in the competitive powersports market.

About RumbleOn


RumbleOn operates primarily through two significant segments: its vast network of powersports dealerships and Wholesale Express, LLC, which specializes in efficiently transporting automotive and powersport products. Recognized as the largest retailer in the powersports domain in the U.S., RumbleOn offers an extensive range of products, including new and pre-owned vehicles, parts, apparel, and related services, representing over 500 franchises and 50 brand offerings. Furthermore, it prides itself on being the foremost purchaser of pre-owned powersport vehicles in the country.

The rights offering was conducted in alignment with RumbleOn’s existing effective shelf registration statement on file with the Securities and Exchange Commission (SEC), coupled with a prospectus supplement that detailed the offering. It’s important to note that these offerings do not constitute an invitation to purchase any securities, as stipulated by SEC guidelines.

RumbleOn remains committed to leveraging its financial strategies effectively to enhance shareholder value while continuing to expand its market impact. By maintaining a robust financial backdrop, they position themselves to capture new growth opportunities and withstand market fluctuations effectively.

Cautionary Notes


The company's communications regarding this offering include forward-looking statements subject to risks and uncertainties that could provoke actual results to diverge from predicted trajectories. Key factors influencing the outcomes include economic conditions, market dynamics, and internal operational challenges. Investors are encouraged to review RumbleOn's filings with the SEC for comprehensive insights into operational risks and financial projections.

For further information about RumbleOn and its latest developments, visit their official website at rumbleon.com.

Topics Consumer Products & Retail)

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