PLBY Group announces results of rights offerings

PLBY Group announced the results of its previously announced $50 million rights offering which, together with the Company’s previously announced registered direct offering, will provide the Company with gross proceeds of $65 million. Pursuant to the terms of the rights offering the Company is issuing, in the aggregate, 19,561,050 shares of the Company’s common stock, par value $0.0001, at a subscription price of $2.5561 per share. The rights offering will provide the Company with gross proceeds of $50 million, before offering fees and expenses. The Company expects to use a minimum of 80% of the gross proceeds from the rights offering for repayment of senior debt under its credit agreement, and to use the remainder, if any, for other general corporate purposes. With such repayment of the debt, along with the $25 million repaid in December 2022, the Company will have repaid at least $65 million of the senior debt. Pursuant to the rights offering, holders subscribed assuming the subscription price was $3.50 per share. Since the Subscription Price was less than the Initial Price, excess subscription amounts paid by holders were applied to the purchase of additional shares of Common Stock. The excess amount for any remaining fractional shares of Common Stock will be returned to applicable stockholders as soon as practicable, in the form in which made. Such stockholders will not receive interest or a deduction on any payments refunded. Both the Company’s largest beneficial owner of Common Stock, Rizvi Traverse Management, and the Company’s Chief Executive Officer, Ben Kohn, fully exercised their basic subscription rights and exercised their over-subscription privileges in the rights offering. Pursuant to the authority of an independent committee of the Company’s board of directors, in approving RTM’s over-subscription the Committee required that RTM enter into a standstill agreement with the Company pursuant to which, among other limitations, RTM and its affiliates may not acquire more than 29.99% of the Company’s outstanding Common Stock, resulting in the Company limiting RTM’s total over-subscription in the rights offering such that it owns 29.99% of the Company’s outstanding Common Stock as of the closing of the rights offering. Due to the rights offering being over-subscribed, the Company will not be issuing any shares of Common Stock pursuant to the backstop commitment made by purchasers in the previously announced registered direct offering, in which such purchasers agreed to purchase up to an additional $10 million of shares of Common Stock, only to the extent that the Company’s rights offering was not fully subscribed. Accordingly, the total gross proceeds received by the Company, before applicable fees and expenses, from the registered direct offering were $15 million.