RumbleOn Announces Commencement of $10.0 Million Fully Backstopped Registered Rights Offering

Core Viewpoint - RumbleOn, Inc. has initiated a $10 million fully backstopped registered equity rights offering to raise funds for general corporate purposes, including the repayment of convertible senior promissory notes and additional capital financing obligations [1][4]. Group 1: Rights Offering Details - The company is offering non-transferable subscription rights to holders of Class A and Class B common stock, allowing them to purchase up to 2,392,344 shares of Class B common stock at a price of $4.18 per share [2]. - Each eligible stockholder will receive one subscription right for each share owned as of the record date, with each right allowing the purchase of 0.0677 shares of Class B common stock [2]. - The subscription rights will expire on December 12, 2024, unless extended by the company [3]. Group 2: Support and Standby Purchase Agreement - RumbleOn has entered into a support and standby purchase agreement with Stone House Capital Management and other board members, ensuring that any shares not subscribed for will be purchased by the standby purchaser [4]. - The standby purchaser will buy any unsubscribed shares at the same subscription price as eligible stockholders [4]. Group 3: Additional Information - The subscription rights will not be listed for trading, but the shares issued upon exercise will be listed on The Nasdaq Capital Market [5]. - Subscription documents will be distributed to eligible stockholders starting November 26, 2024 [5]. - The offering is made under the company's existing effective shelf registration statement filed with the SEC [8].