Exhibit 99.1
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| | FOR IMMEDIATE RELEASE |
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| | August 26, 2020 |
MOHAWK GROUP ANNOUNCES CLOSING OF $23.5 MILLION UNDERWRITTEN PUBLIC OFFERING OF COMMON STOCK AND THE CLOSING OF THE ACQUISITION OF TRUWEO
NEW YORK, August 26, 2020 — Mohawk Group Holdings, Inc. (NASDAQ: MWK) (“Mohawk”), 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.
The securities described above were offered by Mohawk pursuant to a shelf registration statement on Form S-3 (File No. 333-239614) previously filed with the Securities and Exchange Commission (the “SEC”) on July 1, 2020 and declared effective by the SEC on July 8, 2020. A final prospectus supplement and accompanying prospectus related to the offering was filed with the SEC on August 25, 2020 and is available on the SEC’s website at http://www.sec.gov. or from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or via telephone at 212-624-2006 or email: prospectus@allianceg.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
About Mohawk Group Holdings, Inc.
Mohawk Group Holdings, Inc. and its subsidiaries (“Mohawk”) is a rapidly growing technology-enabled consumer products company that uses machine learning, natural language processing,
