Eden Prairie-based iMedia Brands is planning to sell shares in a secondary stock offering that could raise approximately $15 million for the interactive digital commerce company.
The company, formerly known as Evine Live Inc., has an underwriting agreement with Craig-Hallum Capital Group to sell 2.4 million shares of the company at $6.25 per share. There is a 30-day option for the underwriter to purchase an additional 360,000 shares.
The parent company to home-shopping channel ShopHQ earlier this month reported its first quarterly profit since 2018 after a new management team and investor group lead by Invicta Watch Group took over in the spring of 2019.
Since then the management team has made new strategic decisions, invested millions in the company but also reduced expenses and eliminated 300 positions earlier this year citing the economic effects of the coronavirus pandemic.
Invicta Media Investments LLC, iMedia Brands' largest shareholder and an affiliate of vice chairman Eyal Lalo, intends to buy $1.6 million shares of the offering from the underwriter at the $6.25 per share offering price.
The company said it plans to use the proceeds of the stock offering for working capital and general corporate purposes. The offering is expected to close on or about Aug. 28.
Shares of iMedia fell 14% Wednesday, closing at $6.50. In November the company did a 10-for-1 reverse stock split to raise the company share price and avoid a potential minimal delisting requirement. Since the start of the year the company's split adjusted share price has risen approximately 66%.
Patrick Kennedy • 612-673-7926
