Purple Innovation (PRPL, Financials) surged 38.1% to $0.92 as of 2:45 p.m. GMT-4 on Friday after the company announced a review of strategic alternatives following inbound expressions of interest.
To maximize shareholder value, the board is debating a possible sale, merger, or other financial transaction.
Under direction by Gary T. DiCamillo (chair), D. Scott Peterson, and Claudia Hollingsworth, a special committee of independent directors will monitor the assessment. Jefferies LLC has been hired by the corporation as a process financial adviser.
Chairman DiCamillo said the review returns to positive adjusted EBITDA and cash flow after Purple's exceptional fourth-quarter 2024 financial performance, which was marked by A major component in improving the company's financial situation, he also mentioned its enlarged credit facility, which grew by $19 million to reach $80 million overall.
Purple, well-known for its GelFlex Grid mattress technology, said it has not set a schedule for finishing the evaluation and has not decided on a possible purchase either. Apart from really required upgrades, the corporation does not want to provide any more ones.
Along with Purple's fourth-quarter financial results, which revealed an earnings-per-share loss of $0.07, surpassing estimates by $0.01, the news came with Missing projections by $93,910, revenue for the quarter dropped 11.6% year-over-year to $128.98 million.
Purple markets its goods online and via 58 company-owned shops as well as 3,000 retail outlets throughout the country.
