UNDERWRITING
Goldman Sachs & Co. LLC is acting as sole underwriter for this offering. Subject to the terms and conditions set forth in an underwriting agreement among us, the selling shareholders and the underwriter, the selling shareholders have agreed to sell to the underwriter, and the underwriter has agreed to purchase from the selling shareholders, all 7,000,000 shares of common stock being sold in this offering.
Subject to the terms and conditions set forth in the underwriting agreement, the underwriter has agreed to purchase all of the shares sold under the underwriting agreement if any of these shares are purchased. We and the selling shareholders, severally and not jointly, have agreed to indemnify the underwriter against certain liabilities, including liabilities under the Securities Act, or to contribute to payments the underwriter may be required to make in respect of those liabilities.
The underwriter is offering the shares, subject to prior sale, when, as and if issued to and accepted by them, subject to approval of legal matters by their counsel, including the validity of the shares, and other conditions contained in the underwriting agreement, such as the receipt by the underwriter of officers’ certificates and legal opinions. The underwriter reserves the right to withdraw, cancel, or modify offers to the public and to reject orders in whole or in part.
The underwriter has advised us that it proposes initially to offer the shares to the public at the public offering price set forth on the cover page of this prospectus supplement and to dealers at that price less a concession not in excess of $ per share. After this offering, the public offering price, concession or any other term of the offering may be changed by the underwriter.
The following table shows the public offering price, underwriting discount, and proceeds before expenses to the selling shareholders.
| | | | | | | | |
| | Per Share | | | Aggregate Amount | |
Public offering price | | $ | | | | $ | | |
Underwriting discount paid by the selling shareholders | | $ | | | | $ | | |
Proceeds, before expenses, to the selling shareholders | | $ | | | | $ | | |
Subject to the completion of the offering, we intend to repurchase 800,000 of the aggregate 7,000,000 shares of our common stock that are the subject of the offering. The price per share to be paid by us will equal the price at which the underwriter will purchase the shares from the selling shareholders in the offering. Accordingly, the number of shares of our common stock available to the general public will be 6,200,000 shares. See “Prospectus Supplement Summary—Recent Developments—Simultaneous Share Repurchase.” The terms and conditions of the share repurchase were reviewed and approved by a majority of the independent directors of our board of directors. The offering of shares hereby is not conditioned upon the completion of such share repurchase.
We are not selling any shares of common stock in this offering, and will not receive any of the proceeds from the shares of common stock sold by the selling shareholders.
The expenses of the offering, not including the underwriting discount, are estimated at $1 million and are payable by us. The underwriter has agreed to reimburse us for certain offering related expenses. We have also agreed to reimburse the underwriter for up to $15,000 of reasonable fees and expenses of counsel related to the review by the Financial Industry Regulatory Authority, Inc., or “FINRA”, of the terms of sale of the shares offered hereby.
In connection with this offering, we, our executive officers, our directors, the selling shareholders and certain existing shareholders have agreed, subject to certain exceptions, not to sell or transfer any common stock or securities convertible into, exchangeable for, exercisable for, or repayable with common stock, for 60 days after the date of this prospectus supplement without first obtaining the written consent of the underwriter, subject
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