Shift Technologies drops on planned convertible debt deal

Shift Technologies

24/05/2021 13:29

** Shares of online used-car retailer Shift Technologies 
 SFT.O  down 5.4% at $7.07 premarket as it looks to raise
capital
    ** Co offering privately $75 mln 5-yr convertible notes
 urn:newsml:reuters.com:*:nGNX6wSvq8
    ** SFT plans to use portion of net offering proceeds to pay
cost of capped call transactions, remainder for working capital
and general corp purposes
    ** On May 12, co posted 254% yr/yr rise in Q1 rev to $106
mln, helped by higher e-commerce unit sales, and raised 2021 rev
guidance above Street consensus  urn:newsml:reuters.com:*:nL4N2N02RO
    ** YTD, shares down 9.7%. SFT has ~$630 market cap, per
Refinitiv data
    ** Avg rating among 7 analysts is "buy" and median PT is
$12.50 - Refinitiv

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