SOMERSET, N.J. - CompoSecure, Inc. (NASDAQ: CMPO), a specialist in metal payment cards and security solutions, disclosed the pricing of a secondary stock offering by certain shareholders.
The offering includes 7 million shares of Class A common stock at $6.50 each, aiming to raise gross proceeds of $45.5 million. The transaction, which CompoSecure will not benefit financially from, is scheduled to close on May 13, 2024, pending standard closing conditions.
The selling shareholders have also provided underwriters a 30-day option to purchase up to an additional 1.05 million shares. J.P. Morgan, BofA Securities, and TD (TSX:TD) Cowen are serving as joint book-running managers, with B. Riley Securities, Needham & Company, and Roth Capital Partners as co-managers.
The offering is grounded on CompoSecure's amended S-1 and S-3 registration statement with the SEC, which includes a prospectus and a related prospectus supplement. Interested parties can obtain these documents from the SEC's website or directly from the underwriters.
CompoSecure's business revolves around providing secure and aesthetically pleasing payment experiences, combining metal card technology with Arculus security and authentication features. The company's products are designed to facilitate access to financial and digital assets while ensuring transactional trust.
This announcement is based on a press release statement.
InvestingPro Insights
As CompoSecure, Inc. (NASDAQ: CMPO) navigates through its secondary stock offering, investors may be curious about the company's current financial health and future prospects. According to recent data from InvestingPro, CompoSecure boasts a market capitalization of $604.43 million and an attractive price-to-earnings (P/E) ratio of 6.93, suggesting that the stock might be undervalued relative to its near-term earnings growth potential. This is further supported by a PEG ratio (which measures the P/E relative to growth) of just 0.26 over the last twelve months as of Q1 2024, indicating that the company's earnings growth could outpace its P/E ratio significantly.
InvestingPro Tips highlight several key points for potential investors. Firstly, net income for CompoSecure is expected to grow this year, a positive sign for those looking at the fundamental strength of the company. Additionally, the company's valuation implies a strong free cash flow yield, which could be a boon for value investors. These insights are particularly relevant as the company undergoes its current capital restructuring through the secondary offering.
For those looking to delve deeper into CompoSecure's performance and future outlook, InvestingPro offers additional insights. There are more InvestingPro Tips available, including information on earnings revisions by analysts and the company's performance over various time frames. To explore these insights and make more informed investment decisions, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
With the offering set to close on May 13, 2024, investors have a timely opportunity to assess CompoSecure's prospects. The company's focus on secure and innovative payment solutions, combined with its financial metrics, may offer a compelling narrative for those considering adding CMPO to their portfolios.
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