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Lemonade Shares Fall On Secondary Offering

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Insurance carrier and technology business Lemonade (NYSE:LMND) announced after the market close today it would commence a stock offering that is additional. The business stated it could offer 3 million shares of common stock easily obtainable in an S-1 filed utilizing the Securities and Exchange Commission. The underwriters will have the possibility and to sell an additional 678,647 stocks dependent on investor need.

Lemonade had approximately 56 million stocks outstanding at the time of its last report that is quarterly early November, and presuming all shares are sold (including the additional allotment offered to the underwriter), this providing will dilute existing investors by about 6.5%.

Lemonade additionally disclosed that “selling stockholders,” such as specific insiders and early investors, would provide an extra 1,524,314 stocks on the market. It is critical to note that Lemonade will maybe not receive any of the proceeds from this purchase that is extra. The company has not yet disclosed the price tag on the stocks which is provided on the market. The stock fell about 7% in after-hours trading in the news.

Ahead of the providing, Lemonade’s directors and executive officers owned 36.9percent of the shares that are outstanding. The team’s ownership will edge downward to 36.5% after the offering. It isn’t uncommon for very early investors to recoup a number of their investment that is initial that’s specially understandable given the stock’s current performance. In fact, now seems like an ideal time and energy to raise money that is additional.

Lemonade stocks hit a fresh all-time today that is high closing approximately 14% higher. The stock was on fire within the couple that is previous of, gaining significantly more than 250% since bottoming in late October. Strong investor demand drove stocks up 139percent on its day that is first of back in July 2020. After becoming one of the 12 month’s IPO that is hottest, the stock took a breather for all months before resuming its upward trajectory. Insurance carrier and technology business Lemonade.

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