Nautilus Plans To Raise $5M in Latest Move To Boost Cash Balance
The Vancouver-based fitness equipment maker will sell over 4 million shares of its common stock or equivalents to an institutional investor
Nautilus has set forth plans to raise approximately $5 million for general corporate purposes through a direct public offering and warrants.
The fitness equipment maker of brands such as Bowflex, Modern Movement, Schwinn Fitness and Universal Gym Equipment has entered into a definitive securities purchase agreement with an institutional investor for the purchase and sale of 4,098,362 shares of its common stock or common stock equivalents.
The agreement outlines a purchase price of $1.22 per share. The closing of the offering is anticipated to occur on or about June 20.
Nautilus will also issue the investor warrants to purchase up to 4,098,362 shares of common stock with an exercise price of $1.35 per share. The fitness equipment maker says the warrants will be exercisable six months following the date of issuance and will have a term of five and one-half years.
Roth Capital Partners is acting as the exclusive placement agent for the offering.
In May, Nautilus announced it would be selling $13 million in non-core assets including its brand trademark after reporting a significant decline in net sales. At the beginning of the year, Nautilus issued pink slips to roughly 15% of its staff as a cost-saving measure.
The fitness manufacturer has been working on its ‘North Star’ strategy, and its CEO, Jim Barr, pointed to the return to pre-pandemic demand as a primary driver of the sales decline.
Nautilus had discussed a potential sale last fall, with its board of directors hiring Evercore as a financial adviser.
