1847 Goedeker Inc. (GOED) stock prices were up by a significant 18.05% as of the market closing on June 7th, 2021, bringing the price per share up to USD$3.14 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock climb 6.37%, bringing it up to USD$3.34.
Public Offering
The company announced the closing of its underwritten public offering for USD$205 million worth of shares. USD$70 million in debt financing was also closed concurrently, as well as the closing of the acquisition of Appliances Connection. The acquisition results in the creation of the largest pure-play online retailer of household appliances in the U.S.
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Details of the Offering
The underwritten public offering will see the sale of 91,111,111 units, with each unit consisting of one share of the company’s common stock and one warrant to purchase one share of common stock. Each combined unit is priced at USD$2.25 per unit up for sale to the public. Gross proceeds generated by the public offering will amount to USD$205 million before the deduction of expenses related to the undertaking of offering by underwriters.
Additional Option
Underwriters have been granted an option as part of the offering that they can exercise to cover over-allotments with the purchase of up to an additional 2 million warrants. The warrants included in this option are exercisable immediately and have an exercise price of USD$2.25 per share. Each warrant has an expiry date spanning 5 years from the date of issuance. Underwriters have 30 days to avail the option.
Strong April Revenues
The company reported a significant year-over-year improvement in their revenues for the month of April in the fiscal year 2021. Goedeker reported revenue for the month of April in the amount of USD$5.6 million, representing a 56% year-over-year increase. Appliance’s Connection’s revenue for April was up to USD$39.6 million, up 161% from the numbers reported in the April of the prior year. April 2021 revenue was up to USD$45.2 million on a pro forma combined basis, up 140% from the prior year quarter.
Future Outlook for GOEK
Armed with stellar financial reports that consolidate the strength of the fiscal year for GOED, the company is poised to capitalize on the additional resources raised through its public offering. Current and potential investors are hopeful that the management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.
