CompoSecure Announces Pricing Of $45.5 Secondary Offering Of 7M Shares Of Class A Common Stock At A Price Of $6.50/Share By Selling Shareholders
Portfolio Pulse from Benzinga Newsdesk
CompoSecure, Inc. (NASDAQ:CMPO) announced a secondary offering of 7M shares of Class A common stock at $6.50/share by Selling Shareholders, totaling $45.5M. CompoSecure will not receive proceeds from the sale. The offering, managed by J.P. Morgan, BofA Securities, and TD Cowen, with B. Riley Securities, Needham & Company, and Roth Capital Partners as co-managers, is expected to close on May 13, 2024.

May 09, 2024 | 1:24 pm
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CompoSecure announces a secondary offering of 7M shares at $6.50/share, totaling $45.5M, with proceeds not benefiting the company directly.
Secondary offerings often lead to short-term price pressure on the stock due to the increase in available shares and the perception that insiders may be taking profits or reducing their positions. Although the proceeds do not benefit CompoSecure directly, the market may react negatively to the dilution of existing shares. The involvement of reputable financial institutions as managers and co-managers might mitigate some negative perceptions, but the overall impact is likely to be negative in the short term.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100