Kornit Digital falls as co, Amazon to sell shares

Kornit Digital

15/09/2020 18:38

** Kornit Digital Ltd  KRNT.O  down 4.4% to $59.96 after co
launches share offering
    ** Israeli-based textile printer maker late Mon announced
3.6 mln share follow-on, including 1.6 mln shares to be sold by
Amazon.com  AMZN.O   urn:newsml:reuters.com:*:nGNX91G6mV
    ** AMZN share sale relates to $150 mln 5-yr purchase
agreement entered into in 2016 that gave e-commerce giant
warrants exercisable at $13.04
    ** On Sept 14, KRNT and AMZN struck new $400 mln, 5-yr
agreement giving AMZN warrants to buy up to ~3.4 mln shares at
$59.26, based on 30-trading day VWAP (volume weighted avg
price). (See prospectus filing https://www.sec.gov/Archives/edgar/data/1625791/000121390020026447/f424b50920_kornitdigital.htm)
    ** Kornit says intends to use net offering proceeds it
receives for potential acquisitions, and for general corp
purposes
    ** Citigroup, Barclays and Goldman bookrunners for offering
slated to price Weds AMC
    ** Co has ~41 mln shares outstanding for $2.6 bln market cap
as of last close, per Refinitiv data
    ** Even with decline on Tues, KRNT shares up 75% YTD and
hovering near record highs

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 646-223-5017))