RumbleOn Announces Preliminary Results of $10.0 Million Fully Backstopped Registered Rights Offering

Core Points - RumbleOn, Inc. announced preliminary results of its $10 million fully backstopped registered equity rights offering for Class B common stock, with subscriptions for 2,043,011 shares at a price of $4.18 per share [1][4] - The offering was not fully subscribed, leading to a standby purchaser, Stone House Capital Management, expected to buy 349,333 shares in a backstop private placement [2][3] - The estimated net proceeds from both the rights offering and backstop private placement are approximately $9 million, intended for general corporate purposes, including repayment of convertible senior promissory notes [4] Summary by Sections Rights Offering - The subscription period for the rights offering ended on December 12, 2024, with 2,043,011 shares subscribed at $4.18 each [1] - The shares are expected to be issued to participating stockholders around December 17, 2024 [1][5] Backstop Private Placement - Stone House Capital Management will purchase any unsubscribed shares, totaling 349,333 shares at the same subscription price [2] - The backstop private placement is anticipated to close on December 19, 2024 [3] Financial Proceeds - The company estimates net proceeds of approximately $9 million from the rights offering and backstop private placement [4] - Proceeds will be used for general corporate purposes, including repayment of convertible senior promissory notes due January 1, 2025 [4] Company Overview - RumbleOn operates through two segments: Powersports dealership group and Wholesale Express, LLC, focusing on the automotive industry [8] - It is the largest powersports retail group in the U.S., offering over 500 franchises and a wide selection of products [8][9]