Hydrofarm Holdings Group Closes $8.3 Million Registered Direct Offering and Private Placement in Connection with Elimination of $109 Million Term Loan
Hydrofarm closed an $8.3 million registered direct offering at $0.905 per share alongside a concurrent private placement, raising capital priced at-the-market under Nasdaq rules. Concurrently, the company eliminated its $109 million senior secured term loan in full by issuing lenders 27.5 million shares of Series 1 Non-Voting Convertible Preferred Stock and warrants for 27.5 million shares at $0.78, removing approximately $12 million of annual debt service. Pro forma stockholders' equity now exceeds Nasdaq's $2.5 million Equity Rule minimum, and the company believes it has regained compliance, though conversion and warrant exercise still require stockholder approval.
Key figures
- Deal Value Usd
- 8300000
- Offering Price
- 0.905
- Shares Offered
- 1,599,400 registered direct shares plus 7,611,575 private placement shares/pre-funded warrants
- Common warrants
- 9210975
- Term loan eliminated
- $109 million
- Lender warrant shares
- 27500000
- Nasdaq equity rule minimum
- $2.5 million
- Preferred shares to lenders
- 27500000
- Lender warrant exercise price
- $0.78
- Annual debt service eliminated
- $12 million
AI analysis
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