NEW YORK, Aug. 26, 2020 (GLOBE NEWSWIRE) -- Mohawk Group Holdings, Inc. (NASDAQ: MWK), the technology-enabled consumer products company, today announced the closing of its previously announced underwritten public offering of 3,357,140 shares of its common stock at a public offering price of $7.00 per share, before deducting underwriting discounts and commissions and estimated offering expenses payable by Mohawk. The net proceeds to Mohawk from this offering are expected to be approximately $20.6 million, after deducting underwriting discounts and commissions and other estimated offering expenses.
Mohawk also announced the closing of its previously announced acquisition of assets of Truweo, a leading ecommerce brand in the health and personal wellness category. At the closing of the acquisition, Mohawk utilized $13.9 million of the net proceeds to pay the cash consideration payable in the transaction, with the remaining $2.5 million consideration paid in the form of an unsecured promissory note. Mohawk intends to use the remaining net proceeds from the offering to acquire, invest in or license complimentary products, technologies or businesses, and for general corporate purposes, including working capital, operating expenses and capital expenditures.
A.G.P./Alliance Global Partners acted as the sole book-running manager for the offering.
About Mohawk Group Holdings, Inc.
Mohawk Group Holdings, Inc. and its subsidiaries is a rapidly growing technology-enabled consumer products company that uses machine learning, natural language processing, and data analytics to design, develop, market and sell products. Mohawk predominantly operates through online retail channels such as Amazon and Walmart. Mohawk has six owned and operated brands: hOmeLabs, Vremi, Xtava, RIF6, Holonix, and Aussie Health Co. Mohawk sells products in multiple categories, including home and kitchen appliances, kitchenware, environmental appliances (i.e., dehumidifiers and air conditioners), beauty related products and, to a lesser extent, consumer electronics. Mohawk was founded on the premise that if a company selling consumer packaged goods was founded today, it would apply artificial intelligence and machine learning, the synthesis of massive quantities of data and the use of social proof to validate high caliber product offerings as opposed to over-reliance on brand value and other traditional marketing tactics.
