Purple Innovations shares fall 10% premarket after secondary offering of 7.3 million shares

Purple Innovation Inc. shares tumbled 10% in premarket trade Wednesday, after the mattress and sleep products company priced a secondary offering of 7.3 million shares at $30 each, a discount over its closing price of $32.50 on Tuesday. The company said the shares were sold by Coliseum Capital Partners, L.P., Coliseum Co-Invest Debt Fund, L.P., Blackwell Partners LLC — Series A, and Coliseum Capital Co-Invest III, L.P. The selling shareholders will receive all proceeds. Underwriters BofA Securities, KeyBanc Capital Markets and BMO Capital Markets have the option to purchase up to 1.1 million additional shares at the same price for a 30-day period. Purple shares have fallen 1.9% in the year through Tuesday, while the S&P 500 has gained 10%.

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