Kornit Digital drops as Amazon to sell shares in equity offering

Kornit Digital

17/11/2021 17:00

** Kornit Digital  KRNT.O  down 9.2% at $145.49 after
Israeli textile printer maker launches equity offering
    ** Co late Tues announced 2.2 mln shares, including 705,701
shares to be sold by Amazon.com  AMZN.O   urn:newsml:reuters.com:*:nGNX43s1M3
    ** AMZN share sale relates to purchase agreement entered
into five years ago that gave e-commerce firm warrants
exercisable at $13.04. New agreement struck last year gave AMZN
warrants to buy up to ~3.4 mln KRNT shares at $59.26
    ** KRNT plans to use net offering proceeds it receives for
potential acquisitions, general corp purposes
    ** Co has ~46.3 mln shares outstanding, per Refinitiv data
    ** Citigroup, Goldman and Morgan Stanley bookrunners for
offering targeted to price Thurs after market close
    ** Despite decline on the session, KRNT shares up ~63% YTD
    ** All 9 analysts covering KRNT recommend buying the stock
and their median PT is $177.50, up from $147 on Aug 17 -
Refinitiv

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))