On January 19, Casper Sleep Inc. (CSPR) announced the approval of the merger agreement for being acquired by Durational Capital Management, LP. Following the announcement, the stock gained further in the after hours.
In regular trading, CSPR stock fluctuated between $6.03 and $5.52 at 6.28 million shares. The stock closed the session with a gain of 10.19% at $5.73. Consequent to the news, the stock continued to gain in the after-hours to add a further 11.17%. Hence, CSPR stock was trading at $6.37 per share at a volume of 2.35 million in the after-hours on Wednesday.
The sleep products provider, Casper Sleep Inc. is headquartered in New York, NY. Currently, the company has a market capitalization of $216.44 million. Moreover, its 41.62 million outstanding shares have decreased by 11.16% in the past five days.
CSPR Merger Agreement
Previously, on November 15, the company had announced its definitive merger agreement for the acquisition by Durational Capital Management LP. According to this, CSPR will e acquired by certain subsidiaries of Durational Consumer SPV IV, LP. Further, the Durational Consumer SPV IV, LP. is an investment vehicle managed by Durational.
As per the terms of the agreement, CSPR’s stockholders will receive $6.90 per share in cash consideration. Therefore, this represents a 94% and 80% premium to November 12’s closing share price and 30-day volume-weighted average price, respectively.
The agreement was unanimously approved by the company’s board of directors, while the stockholders were recommended to approve the transaction.
Approval of the Agreement
Today, the company announced that CSPR’s stockholders also voted for adopting the Agreement and Plan of Merger. The company shared the preliminary results at its Special Meeting of Stockholders. According to this, 69.5% of the company’s outstanding stock votes were in favor of the merger. Additionally, the final voting results of the meeting (by an independent inspector) will be filed in Form 8-K with SEC.
The expected close of the transaction is somewhere during the week of January 24, 2022. Following the close, the company will operate as a New York-based privately-held company.
CSPR in Numbers
In the third quarter of 2021, the company generated an all-time record quarterly revenue of $156.5 million. This shows an increase of 26.8% year over year.
In addition, the net loss also increased to $25.3 million in the third quarter of 2021. This includes a one-time lease write-off charge of $2.4 million. Hence, marking a 59.4% year-over-year increase.
