SH Capital Partners (WA:CPAP), L.P., a significant shareholder in RumbleOn, Inc. (NASDAQ:RMBL), recently acquired 349,333 shares of Class B Common Stock at a price of $4.18 per share. This transaction, valued at approximately $1.46 million, was part of a backstop private placement. The shares were acquired after the expiration of RumbleOn's rights offering, as previously agreed upon by SH Capital Partners. The acquisition price represents a significant discount to the current trading price of $5.22, though InvestingPro data shows the stock has experienced a -35.87% decline year-to-date, with a market capitalization of $184.64 million.
The filing indicates that SH Capital Partners is the record and direct beneficial owner of the acquired securities, with Stone House Capital Management, LLC acting as the general partner and investment manager. Mark Cohen, a managing member of Stone House, is also involved in this transaction, although the filing clarifies that the parties involved do not admit to being a part of a group for the purposes of certain securities regulations.
Additionally, Mark Cohen holds 28,531 restricted stock units, which are yet to vest and are intended to be transferred to SH Capital Partners upon vesting.
In other recent news, RumbleOn, Inc. has successfully concluded its $10 million rights offering. The offering involved Class B common stock, with shareholders covering approximately 85% of the available shares. The remaining shares were purchased by Stone House Capital Management, LLC. Post (NYSE:POST) the rights offering and subsequent private placement, RumbleOn anticipates a net gain of around $9 million, earmarked for general corporate purposes, including potentially repaying the company’s convertible senior 6.75% promissory notes due January 1, 2025.
In addition to this financial activity, RumbleOn reported a decrease in Q3 earnings for 2024, with revenue falling by 12.7% to $295 million and adjusted EBITDA declining by 26.1% to $6.8 million. Despite this, the company managed a 53.8% reduction in total inventory and secured a $30 million capital commitment from major shareholders for debt repayment and refinancing.
In analyst notes, B. Riley adjusted its stance on RumbleOn, downgrading the stock from Buy to Neutral. This decision came after a significant rise in the stock.
In other company news, RumbleOn entered into an exclusive partnership with popular streamer Dr Disrespect. The equity deal is tied to performance milestones and includes the creation of exclusive content for Rumble's Premium platform. These are recent developments that highlight RumbleOn's strategic moves to boost its content offerings and manage its financial health.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.