Shares of Casper Sleep Inc. skyrocketed 91.0% toward a three-month high in premarket trading Monday, after the mattress in a box company announced an agreement to be acquired by Durational Capital Management in a cash deal valuing Casper at about $286.0 million. Under terms of the deal, Durational Capital will pay $6.90 for each Casper share outstanding, representing at 94.4% premium to Friday’s closing price of $3.55. The deal is expected to close in the first quarter of 2022. “The proposed acquisition offers shareholders immediate and substantial value, and ensures the business has the financial flexibility required to support continued growth,” said Casper Chief Executive Philip Krim. Separately, Casper reported a third-quarter net loss that widened to $25.3 million, or 61 cents a share, from a loss of $16.1 million, or 40 cents a share, in the year-ago period. Revenue rose 26.8% to $156.5 million, while cost of sales jumped 68.6% to lower gross margin to 40.8% from 55.5%. The company also announced that it named Emilie Arel, formerly of Quidsi, Gap and Target, as its chief executive. Casper’s stock has tumbled 42.3% year to date through Friday, while the S&P 500 gained 24.7%.
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