Business Context and Reporting Period
This Form 8-K filing by RumbleOn, Inc. (formerly Ridenow Group, Inc.) reports on events occurring on January 16, 2020, with the report dated January 17, 2020. The filing details the full exercise of an over-allotment option by underwriters in connection with the Company's recent public offering of Class B Common Stock.
Key Financial Metrics
- Shares Issued: 2,700,000 additional shares of Class B Common Stock were issued under the over-allotment option.
- Offering Price: $0.57 per share.
- Total Shares Sold: The aggregate number of shares sold in the offering increased to 20,700,000 (including the initial 18,000,000 shares).
- Net Proceeds: Approximately $10.7 million (after deducting expenses).
- Use of Proceeds: Working capital, general corporate purposes, technology development, marketing, advertising, and capital expenditures.
Material Changes
The primary material change is the increase in the total capital raised and the number of outstanding shares due to the full exercise of the over-allotment option. This action closed the public offering that was initially completed on January 14, 2020.
Outlook and Management Commentary
Management intends to utilize the net proceeds to support business growth through technology development and increased marketing spend. Pending these specific uses, the Company plans to invest the funds in short-term interest-bearing investment-grade instruments. The filing incorporates a press release dated January 17, 2020, by reference.
Investor Verification Checklist
- Verify the final total share count of 20,700,000 shares sold in the offering.
- Confirm the net proceeds figure of approximately $10.7 million against the gross proceeds and underwriting discounts.
- Review the attached press release (Exhibit 99.1) for any additional details on the allocation of funds.
- Note that the filing does not provide specific revenue, profit, or debt metrics for the reporting period.