Lazydays Holdings Cancels Rights Offering Amid Market Changes; Coliseum Capital Increases Stake

Lazydays Holdings Cancels Rights Offering Amid Market Changes; Coliseum Capital Increases Stake

Lazydays Holdings Rights Offering Cancellation

Tampa, FL – November 13, 2023 – Lazydays Holdings Inc. (NASDAQ: LAZY), a prominent player in the recreational vehicle (RV) industry, announced the cancellation of its previously planned rights offering of shares. This strategic shift comes in response to evolving industry dynamics and a noticeable dip in the company’s stock price since the initial announcement of the offering.

The cancelled rights offering, initially extended to holders of the company’s common stock, pre-funded warrants, and series A convertible preferred stock, was aimed at raising capital through the distribution of additional shares. However, the decline in share value and market volatility led to the decision to explore alternative funding avenues. Lazydays now seeks to leverage mortgage financing on owned real estate and optimize the performance of existing stores. The company also plans to slow down certain acquisitions, aligning them more closely with operational cash flows and current market conditions.

In the wake of this development, affected offering rights exercised by holders will become void, and Lazydays has committed to promptly returning all subscription payments received, without interest or penalty.

Parallel to these developments, Coliseum Capital Management, LLC, a key investor in Lazydays, has filed a report revealing an increased stake in the company. According to the latest SEC filing, Coliseum Capital now owns 6,738,424 shares of Lazydays Holdings, marking a substantial 41.9% ownership. This increased stake signifies a notable rise from their previously reported ownership of 6,656,565 shares (36.80% of the company), indicating a strategic move by the investment firm following positive Q3 results from Lazydays.

This increase in shareholding by Coliseum Capital Management underscores a robust confidence in the long-term potential of Lazydays, despite the company’s recent shift in its capital raising strategy. The bolstered stake by a major shareholder is a significant vote of confidence in Lazydays’ market position and future growth prospects, especially in a fluctuating economic environment.

As Lazydays navigates through these changes, the market and industry observers keenly watch how these strategic decisions will shape the company’s trajectory in the competitive RV industry. With a significant backer like Coliseum Capital Management reinforcing its commitment, Lazydays appears poised to adapt and thrive amidst evolving market challenges.

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