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Kaspien Holdings Inc. (KSPN), a leading e-commerce platform providing tailored solutions for brands on digital marketplaces, recently closed a private placement and offering, securing approximately $7.1 million in net proceeds. These funds are intended to be used for working capital and other general corporate purposes.
The private placement, which closed on July 14, 2022, saw the company receive approximately $6 million in gross proceeds before deductions for discounts, commissions, and estimated offering expenses. Concurrently, the company entered into a Securities Purchase Agreement with a single institutional investor. This agreement allowed the company to issue and sell 638,978 shares of its common stock or pre-funded warrants, resulting in approximately $2 million in gross proceeds before deductions.
After accounting for placement agent fees and other estimated expenses, the total net proceeds amounted to $7.1 million. This substantial injection of funds will bolster the company’s working capital and help it continue pursuing its mission of empowering brands to grow their online distribution channels on digital marketplaces.
Kaspien Holdings recently sold substantially all the assets of its agency business to Channel Key LLC. In return, they received a base purchase price of $200,000, plus the assumption of certain liabilities. Additionally, Kaspien is entitled to an earnout payment equal to 50% of the total revenue Channel Key earns for each quarter in the 12-month period following the transaction’s close, up to a maximum aggregate amount of $525,000.
The company’s core principles include partner obsession, being insights-driven, simplifying processes, taking ownership, and empowering each other. They provide a platform of services, including account management, media planning, analytics, search strategy, business planning, and data reporting, to brands on digital marketplaces such as Amazon, Walmart, and Target.
This latest influx of funds paves the way for Kaspien Holdings to further innovate its proprietary technology and expand its offerings, ensuring the company remains a leader in providing tailored e-commerce solutions for brands aiming to excel in the digital marketplace.
Note that we may hold securities mentioned in this article. The source of this article are the SEC filings available at https://www.sec.gov/Archives/edgar/data/795212/000114036123029614/brhc20054082_10q.htm that we extracted with the help of various software tools. Even though we have implemented various fact-checking processes, some incorrect information may have remained in the article (false positive). Let us know if you find any inconsistencies!