Deal to be conducted alongside $1.7 million private placement of stock
By Devika Patel
Knoxville, Tenn., Feb. 2 – Turtle Beach Corp. said it priced a $5 million public sale of stock with a $750,000 greenshoe. The deal was announced on Monday and will be conducted alongside a $1.7 million private placement of stock with SG VTB Holdings, LLC, also announced on Monday.
In the public sale, the company will sell 5 million common shares at $1.00 per share. It will sell another 1.7 million shares at the same price in the placement. The price per share is an 18.7% discount to the Feb. 1 closing share price of $1.23.
Oppenheimer & Co. Inc. is the bookrunner.
Chairman of the board Ronald Doornink and chief executive officer Juergen Stark plan to invest $1.45 million in the public offering.
Settlement of both deals is expected on Feb. 5.
Proceeds will be used to pay down debt under the company’s working capital line of credit.
Valhalla, N.Y.-based Turtle Beach designs audio products for the consumer, commercial and health care markets.
| Issuer: | Turtle Beach Corp.
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| Issue: | Common stock
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| Amount: | $6.7 million
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| Price: | $1.00
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| Warrants: | No
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| Announcement date: | Feb. 1
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| Pricing date: | Feb. 2
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| Settlement date: | Feb. 5
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| Stock symbol: | Nasdaq: HEAR
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| Stock price: | $1.23 at close Feb. 1
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| Market capitalization: | $42.52 million
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| Public sale
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| Amount: | $5 million
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| Greenshoe: | $750,000, or 750,000 shares
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| Shares: | 5 million
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| Bookrunner: | Oppenheimer & Co. Inc.
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| Co-manager: | Lake Street Capital Markets
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| Investors: | Ronald Doornink and Juergen Stark
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|
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| Placement
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| Amount: | $1.7 million
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| Shares: | 1.7 million
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| Investor: | SG VTB Holdings, LLC
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