Offering will help fund planned $170 million United Online acquisition
By Devika Patel
Knoxville, Tenn., May 5 – B. Riley Financial, Inc. said it priced a $20 million public sale of stock with a $3 million greenshoe. The offering was announced on Wednesday.
The company will sell 2,105,200 common shares at $9.50 per share. The price per share reflects a 6.03% discount to the May 4 closing share price of $10.11.
B. Riley & Co., LLC is the underwriter.
Proceeds will be used for some of the cash consideration the company plans to pay to the stockholders of United Online, Inc. in connection with the company’s planned acquisition of United Online and for general corporate purposes. In the acquisition, the company will acquire United Online for $11.00 per share, or about $170 million.
United Online owns the internet access brands, NetZero and Juno, which offer a range of dial-up and DSL internet access services.
The financial services provider is based in Los Angeles.
| Issuer: | B. Riley Financial, Inc.
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| Issue: | Common stock
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| Amount: | $20 million
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| Greenshoe: | $3 million, or 315,780 shares
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| Shares: | 2,105,200
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| Price: | $9.50
|
| Warrants: | No
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| Underwriter: | B. Riley & Co., LLC
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| Announcement date: | May 4
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| Pricing date: | May 5
|
| Stock symbol: | Nasdaq: RILY
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| Stock price: | $10.11 at close May 4
|
| Market capitalization: | $164.49 million
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