Clarus Announces Public Offering of 2.75 Million Shares

Salt Lake City-based Clarus (NasdaqGS:CLAR) has announced its intent to sell 2.75 million shares in a "Public Offering."

According to the company website, Clarus "... is a leading developer, manufacturer and distributor of best-in class outdoor equipment and lifestyle products focused on the climb, ski, mountain, and sport markets."

The Clarus portfolio of brands includes

According to the Clarus Prospectus filed with the U.S. Securities and Exchange Commission (Form 424B5) yesterday, the company plans to use a portion of the net proceeds from the Public Offering to pay off, in full, $65 million in debt.

Given that the firm's shares opened at $29.24 this morning, Clarus would gross ~$80 million were the Public Offering held today.

Clarus plans to use any additional monies raised beyond the $65MM noted above for "general corporate purposes, including capital expenditures and potential acquisitions."

BofA Securities is the lead book-running manager and representative of the underwriters for the offering. The other underwriters are Stifel, Raymond James, and Roth Capital Partners, but no date beyond 2021 is noted in this first publication of the Prospectus.

As is customary, these "... underwriters have a 30-day option to purchase up to 412,500 additional shares of common stock from (Clarus), at the public offering price less the underwriting discount, to cover over-allotments, if any."

Post-offering the company will have between 36.5MM to 36.9MM shares outstanding, giving Clarus a market capitalization of slightly over $1 billion (as of market open today).

NOTE:  No target date was given by Clarus in its Prospectus for the sale of these shares. My expectation, however, is that the pricing will "go effective" (the date the shares will actually be sold) before January 1, 2022.

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