Le Lézard
Classified in: Sports and recreation
Subject: Share Issue

RumbleOn Announces Final Results of Rights Offering

RumbleOn, Inc. (NASDAQ: RMBL) (the "Company" or "RumbleOn") announced today the final results of its $100.0 million rights offering (the "Rights Offering"). The subscription period of the Rights Offering expired at 5:00 P.M. Eastern Time, on December 5, 2023. The Rights Offering resulted in subscriptions for approximately 81.1% of the shares offered at an exercise price of $5.50 per share. The shares of Class B common stock subscribed for are expected to be issued to participating stockholders on or about December 8, 2023.

Steve Pully, Executive Chairman of the Company, commented, "I want to thank all of the stockholders that participated in the Rights Offering, and especially the Standby Purchasers, Mark Tkach, William Coulter, and Stone House Capital Management, LLC. The successful Rights Offering is a transformative transaction for RumbleOn."

Mike Kennedy, Chief Executive Officer of the Company, added, "the proceeds from the Rights Offering will both lower our debt levels and also give us the ability to proactively grow our business - this is a significant accomplishment for the Company. It is an exciting time for me to lead RumbleOn."

As previously disclosed, the Company entered into an agreement with Mark Tkach, William Coulter, and Stone House Partners (collectively, the "Standby Purchasers") to backstop the Rights Offering through a private placement of shares in the event that the Rights Offering was not fully subscribed (the "Backstop Private Placement"). Because the Rights Offering was not fully subscribed, the Standby Purchasers will purchase the unsubscribed shares for an aggregate amount of $18,938,090.

The Rights Offering and Backstop Private Placement are expected to close on December 8, 2023.

The net proceeds to be received by the Company in the Rights Offering and the Backstop Private Placement is expected to be approximately $98.4 million. The Company will use $50.0 million of the net proceeds to prepay a portion of the Company's outstanding debt under its Term Loan Credit Agreement, dated as of August 31, 2021, as amended, with Oaktree Fund Administration, LLC. The remaining proceeds will be available to fund the growth and development of the Company's business, including for possible acquisitions and other corporate purposes.

Following the completion of the Rights Offering and the Backstop Private Placement, the Company expects to have approximately 35,015,190 million shares of its Class B common stock outstanding.

A registration statement on Form S-3 (File No. 333-274859) relating to the Rights Offering was filed with and declared effective by the Securities and Exchange Commission (the "SEC"). The Rights Offering was made only by means of a prospectus, copies of which can be accessed through the SEC's website at www.sec.gov. Additional information regarding the Rights Offering is set forth in the prospectus filed with the SEC.

About RumbleOn

RumbleOn, through its RideNow Powersports subsidiary, is the largest powersports retailer in North America, operating over 55 locations representing 30 brands primarily in the Sun Belt. We offer a wide selection of new and used motorcycles, all-terrain vehicles, utility terrain vehicles, personal watercraft, and other powersports products, including parts, apparel, accessories, and aftermarket products from a wide range of manufacturers. Additionally, we offer a full suite of financing, parts, repair, and maintenance services. Our asset light logistics company, Wholesale Express, provides freight brokerage services facilitating transportation for dealers and consumers. To learn more please visit us online at https://www.rumbleon.com/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, those regarding the closing of the Rights Offering and the Backstop Private Placement, and the use of proceeds from the Rights Offering and the Backstop Private Placement. Forward-looking statements generally can be identified by words such as "anticipates," "believes," "continues," "could," "estimates," "expects," "intends," "hopes," "may," "plan," "possible," "potential," "predicts," "projects," "should," "targets," "would" and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from current expectations and beliefs, including, but not limited to risks related to the diversion of management's attention from RumbleOn's ongoing business operations; the impact of general economic, industry or political conditions in the United States or internationally, as well as the other risk factors set forth under the caption "Risk Factors" in the Registration Statement, as amended, and in RumbleOn's Annual Report for the year ended December 31, 2022 and Quarterly Reports on Form 10-Q for the quarters ended March 30, 2023, June 30, 2023, and September 30, 2023 and in any subsequent filings made with the SEC by RumbleOn. Any forward-looking statements contained in this press release speak only as of the date hereof, and RumbleOn specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

These press releases may also interest you

at 17:40
SMH Sports & Entertainment is proud to announce the exciting new partnership between Woodforest Bank and the Houston SaberCats rugby team, marking a significant step in both organizations' commitment to community engagement and sports development....

at 17:16
Fast Guard Service, the nation's leading security guard service provider for over a decade, underscores the critical need for professional security measures to safeguard youth sporting events across the country. "The role of security in ensuring the...

at 17:00
The Government of Canada is committed to supporting First Nations, Inuit and Métis communities in building strong and healthy communities through sport and physical activity.  Today, the Honourable Carla Qualtrough, Minister of Sport and Physical...

at 17:00
The City of Newark and Invest Newark have pledged $2.3 million in funding for eight retail businesses as part of a new Retail Reactivation Initiative to increase the number of amenities in Newark's Arts & Education District. The news was announced...

at 16:20
Liberty Media Corporation ("Liberty") today announced the payment of a quarterly interest payment and an Excess Regular Additional Distribution to the holders as of February 15, 2024 of its 2.75% Exchangeable Senior Debentures due 2049 (the...

at 16:00
1/ST, the innovative brand behind North America's most prestigious Thoroughbred horse racing, entertainment and wagering events, announces a $25 million dollar racing and incentive series connecting Preakness 149, The California Crown and the 2025...

News published on and distributed by: