Kaspien to raise $13.5 million through underwritten public stock offering

Kaspien Holdings Inc. is looking to raise $13.5 million via an underwritten public offering agreement with a New York-based broker-dealer.

Aegis Capital Corp. has agreed to purchase 416,600 shares of Kaspien’s stock, which, in turn, will be offered to the public at $32.50 per share, according to a Kaspien news release.

The Spokane Valley-based company indicated in a filing with the U.S. Securities and Exchange Commission it intends to use proceeds from the public offering for general corporate purposes, which include “working capital to implement its strategic plans focused on brand acquisition, and investments in technology to enhance its scalable platform and its core retail business.” Closing of the offer is anticipated to occur “on or around March 18, subject to customary closing conditions,” according to the company.

Kaspien shares were down 28.8% to $30 at market close Tuesday. The company’s stock hit a 52-week high of $63.10 per share Jan. 10.

Kaspien Holdings Inc. is the parent company of Kaspien, an e-commerce growth platform that offers software and services to help brands grow on Amazon, Walmart, Google Shopping, Target, eBay and other online marketplaces. The company was founded in 2008 as etailz and underwent a rebranding last year to Kaspien.

Kaspien hit a $1 billion milestone in sales in January, as the company has benefited from an increase in online shopping during the pandemic. Earlier this month, Kaspien was selected as a third-party seller on Target’s invite-only marketplace.