GoPro Inc. selling $US800 million of stock to raise capital

GoPro Inc’s CEO, Nicholas Woodman, is going to be selling part of his stake in the company as part of a $800 million offering of the company’s shares.

The company officially filed to sell $800 million of stock on Monday morning.

GoPro Inc. will be offering Class A common shares in the next couple of weeks, according to a company spokesman.

Mr. Woodman sent an email to employees to provide information on why the company is selling stock:

“I plan to sell a portion of my holdings in GoPro, but no one should misunderstand my commitment to the company or our vision,” Woodman wrote. “As I told investors on our earnings call last week, I plan to be a significant shareholder in GoPro for a long time. I’m a huge believer in our vision and our ability to realize it.”

GoPro sold 17.8 million Class A shares in June when it launched its initial public offering, excluding over-allotment options. The company’s stock has tripled since it went public.

Woodman outlined GoPro’s two main goals with the offering, which are to raise $100 million of new capital and to facilitate a more orderly sale of stock at the end of its lock-up expiration.

After a company goes public there is a period of around 6 months in which company insiders cannot sell shares.

Nick_Woodman_2014

Mr Woodman holding the GoPro Hero 4 device.

Below is the email that Woodman sent to GoPro Inc. employees:

“This morning, GoPro filed documents with the Securities and Exchange Commission outlining our plans to conduct a ‘follow-on and secondary’ offering of our stock. This is a relatively common occurrence following an IPO – it allows the company to raise additional capital while providing our early investors and employees with vested options the opportunity to realize a return on their hard work and dedication to GoPro.

While all permanent, full-time employees receive equity compensation, only those holding vested options and shares can participate in this particular event.

This follow-on offering provides two key benefits:

First, we expect to raise approximately $100 million of new capital for the company which will provide us with additional resources to invest in people, products, potential acquisitions, and infrastructure to help us achieve our long-term vision.

Second, this offering is intended to facilitate a more orderly and gradual sale of shares than what might otherwise occur when the IPO lock-up ends on December 22. Our goal is to reduce the impact that the IPO lock-up expiration may have on our stock price. To help further this goal, larger shareholders that participate in this offering will be signing a new 90-day lock-up agreement.

I plan to sell a portion of my holdings in GoPro, but no one should misunderstand my commitment to the company or our vision. As I told investors on our earnings call last week, I plan to be a significant shareholder in GoPro for a long time. I’m a huge believer in our vision and our ability to realize it.

Thanks for continuing to make our vision for GoPro a reality, team. The passion, experience and execution that we bring to work is what makes all of this possible. It’s the reason why the world believes in us. I’m throwing out a huge hug, Hi5 and thank you for making GoPro the incredible company that it is.”


Discover more from Market Business News

Subscribe to get the latest posts sent to your email.