Transaction includes commitments for a $185 million private capital raise at $10 per share anchored by institutional investors and Shift will use proceeds to invest in multiple growth initiatives and support working capital. The pro forma implied market capitalization of the combined entity is about $730 million
Toby Russell, Shift Co-CEO added, “Our high net promoter score demonstrates our success in delivering a simple, satisfying car buying experience for consumers, and our strong market penetration in our core markets demonstrates our ability to effectively scale the business. We operate in a massive market and we believe that there is a significant opportunity to continue to rapidly grow our business. We are actively pursuing our growth initiatives as we execute on our vision.”
Following the close of the transaction, Shift’s highly experienced management team will continue to operate the combined company.
Source: Company Press Release