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Getting your Trinity Audio player ready...
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This morning investors are flocking to the Purple Innovation Inc (NASDAQ:PRPL) stock in a big way after a major new announcement from the company. The mattress and bedding retail company confirmed this morning that it had received a bid from Coliseum Capital Management LLC, a hedge fund. It should be noted that Purple Innovation had also pointed out that the bid was unsolicited.
However, the reason for the 35% jump in the stock price this morning is because of the fact that Coliseum has placed a bid of $4.35 a share for the stock, which works out to a premium of as much as 55.9% from the closing price of the stock last Friday. In addition to that, the bid values the company at almost $362 million.
The company did not reject the bid outright and in fact, noted that the board of directors was going to consider the details of the offer carefully before deciding on a course of action. It was also noted that the decision is going to take the best interest of the company and its shareholders into consideration. In this regard, it may also be a good idea for investors to take a closer look at Purple Innovation as a company.
It is a digitally native company that is committed to helping live a better life through state-of-the-art comfort products. The company has worked on its products through research, innovation, and investment for more than three decades. One of the most important pillars of the company’s operations is its Hyper-Elastic Polymer, which is the basis of most of its products. In light of the latest offer that has been placed by Coliseum, investors are going to watch the stock closely and also watch for the next update from Purple Innovation.