Leaf Group Ltd. (NYSE: LEAF), shares dipped -14.29% to $4.8 in the post-market hours yesterday after a unique consumer internet firm revealed its plan to offer and sell shares of its common stock in a public offering underwritten by it. Furthermore, Leaf Company plans to give the underwriters an option of 30 days to buy up to 15% of its common stock shares for sale on request. Leaf Group will be selling all shares of common stock in this proposed offering. There can be no guarantee as to when or where the deal offered can be closed or the exact size or conditions of the offer.
The Leaf Group plans to use the planned sale’s gross profits for working capital and general corporate purposes if achieved. The Leaf Group can also use a part of the net proceeds to purchase complementary companies, products, and technology, even if the Leaf Group does not have deals, obligations, or understandings to do so.