Purple Innovation (PRPL) Prices Upsized 14M Share Offering

Purple Innovation, Inc. (NASDAQ: PRPL), a comfort innovation company known for creating the "World's First No Pressure® Mattress, with its proprietary GelFlex™ Grid," today announced the pricing of an upsized underwritten public offering by the Company of 14,000,000 shares of its Class A common stock. The underwriter has a 30-day option period to purchase up to 2,100,000 additional shares of Class A common stock from the Company at the same price per share. The offering is expected to close on March 29, 2022, subject to customary closing conditions.

Under the terms of the Company's Credit Agreement, dated as of September 3, 2020 and amended as of February 28, 2022 and March 23, 2022, with the lenders party thereto and KeyBank National Association, as administrative agent, the Company will be obligated to prepay an amount equal to the lesser of the outstanding amount of revolving loans and the aggregate amount of cash held by the Company in excess of $25 million. The Company has currently borrowed the entire $55 million available under the revolving loans. If, after receiving the net proceeds of the offering, the Company has more than $25 million of cash on hand, the Company will be required to use such excess cash to prepay the outstanding balance under the revolving loans, up to the amount of the entire outstanding balance. As of the date hereof, the Company has approximately $25 million in cash on hand. After satisfying the conditions under the Credit Agreement, the Company intends to use the net proceeds from this offering for working capital and general corporate purposes, which may include working capital, capital expenditures, other corporate expenses and acquisitions of complementary products, technologies or businesses. The Company does not currently have binding agreements or commitments to complete any such transactions or, except as described above, to make any such principal repayments from the proceeds of this offering.

BofA Securities is acting as the sole underwriter for the offering.

The offering is being made pursuant to an effective shelf registration statement (File No. 333-263621) that was previously filed with the Securities and Exchange Commission (the "SEC") on March 16, 2022. A preliminary prospectus supplement relating to the offering has been filed with the SEC. Copies of the preliminary prospectus supplement and the accompanying prospectus relating to these securities may be obtained on the SEC's website, www.sec.gov, or from BofA Securities, NC1-004-03-43, 200 North College Street, 3rd Floor, Charlotte, North Carolina 28255-0001, Attn: Prospectus Department, or [email protected].

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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