Shift Technologies slips after pricing upsized convertible offering

Shift Technologies

25/05/2021 14:10

** Shares of online used-car retailer Shift Technologies 
 SFT.O  down 1.7% at $6.50 premarket as co raises more capital
than planned
    ** SFT prices $125 mln 4.75% 5-yr convertible notes
 urn:newsml:reuters.com:*:nGNXb4GnVf
    ** Offering size boosted from $75 mln; conversion price of
$8.43 represents 27.5% premium to stock's last sale
    ** SFT plans to use ~$24 mln of net offering proceeds to pay
cost of capped call transactions, remainder for working capital
and general corp purposes
    ** On May 12, co said Q1 rev more than tripled, aided by
higher e-commerce unit sales, and hiked 2021 rev forecast above
analysts' expectations  urn:newsml:reuters.com:*:nL4N2N02RO
    ** SFT shares on Mon fell 11.5%, extending YTD loss to 20%
    ** Co, which has ~$556 mln market cap (per Refinitiv), went
public in Oct after $730 mln SPAC deal with Insurance
Acquisition Corp

 (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))