CPI Card Group Inc. Moves Forward with Secondary Stock Offering
CPI Card Group Inc. Moves Forward with Secondary Stock Offering
CPI Card Group Inc. (Nasdaq: PMTS), a leader in the payments technology industry, has recently made waves by announcing a significant secondary public offering. The company is known for its comprehensive range of credit, debit, and prepaid card solutions, which now includes Software-as-a-Service (SaaS) based instant issuance. This offering, initiated by majority stockholders affiliated with Parallel49 Equity, involves an underwritten sale of 1,000,000 shares of the company’s common stock.
Details of the Stock Offering
The stockholders have also indicated their intention to provide underwriters with a 30-day option for the purchase of up to an extra 150,000 shares of common stock. This highlights the flexibility of the offering and the stockholders’ response to favorable market conditions. However, the completion of this offering hinges on market variables, with no guarantees regarding the sizing or terms of the offering at this stage.
Proceeds and Company Involvement
It’s important to note that the selling stockholders will retain all proceeds from this transaction. CPI Card Group is not involved in the offering of any shares in this transaction, meaning the company will not receive any funds from the sale of shares.
Managing the Offering
D.A. Davidson & Co. has been appointed the sole book-running manager for this secondary offering. Their expertise will be vital in navigating the complexities of the stock market as this offering proceeds.
Registration and Compliance
A registration statement relating to the securities has been submitted and approved by the U.S. Securities and Exchange Commission (SEC). This ensures that CPI Card Group complies with regulatory requirements as they move forward with the offering. The company has also prepared a preliminary prospectus supplement and an accompanying prospectus, both of which are necessary for transparency and compliance.
Understanding the Market Landscape
The financial landscape is ever-changing, and CPI Card Group aims to adapt to these shifts while focusing on its expertise in payments technology. Providing innovative solutions is a priority for the company, which prides itself on building personal relationships with its customers.
Innovative Solutions at CPI Card Group
Through the use of cutting-edge technology, CPI Card Group helps its diverse range of clients navigate the intricate world of payments. Their offerings extend across various industries and scales, enhancing the customer experience and enabling brands to strengthen their connections with users.
Commitment to Security and Quality
The company operates a network of high-security production and card service facilities located within the United States. This strategic approach ensures that all products meet rigorous standards, offering peace of mind to clients as they engage in payment transactions.
About CPI Card Group Inc.
CPI Card Group stands as a prominent payments technology company, delivering an extensive portfolio of payment card and digital solutions. With a commitment to earning trust and forming lasting relationships with clients, they focus on driving innovation and quality in the payment solutions sector.
Frequently Asked Questions
What is the purpose of CPI Card Group's secondary offering?
The secondary offering allows stockholders to sell shares in response to favorable market conditions, without the company directly offering new shares.
Who are the primary stockholders involved in the offering?
The primary stockholders affiliated with Parallel49 Equity are initiating the secondary offering.
Will CPI Card Group receive any proceeds from the sale?
No, the proceeds from the sale will solely go to the selling stockholders, not to CPI Card Group.
What role does D.A. Davidson & Co. play in this offering?
D.A. Davidson & Co. acts as the sole book-running manager, overseeing the offering process.
What does CPI Card Group specialize in?
CPI Card Group specializes in credit, debit, and prepaid card solutions, along with digital payment technologies.
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