PLBY Group Slides on Heels of 4 Million Share Offering

PLBY Group says it is 'building the leading pleasure and leisure lifestyle platform for men and women around the world.'
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PLBY Group  (PLBY) - Get Report was sliding Tuesday after the publisher of "Playboy Magazine" announced an underwritten public offering of 4 million common shares.

PLBY, from Los Angeles, was falling nearly 3% to $50.58 on Tuesday. The stock has risen 382.2% year to date.

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PLBY Group said that it intends to use the net proceeds it receives from the proposed offering "to fund future growth, including potential future acquisitions, and for working capital and general corporate purposes."

PLBY Group said it expects to grant the underwriters a 30-day option to purchase up to an additional 600,000 shares of  stock at the public offering price, less underwriting discounts and commissions.

"We are building the leading pleasure and leisure lifestyle platform for men and women around the world," the company said in a regulatory filing. "Our commercial strategy is to create high consumer lifetime value while maintaining low consumer acquisition costs."

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PLBY Group said that its immediate focus for owned and operated operations "is in the Sexual Wellness category in Western markets, where we can aggregate what today is a highly fragmented market through in-house product development and acquisitions and move quickly to gain consumer mindshare and build a leading digital and physical retail presence."

Canaccord Genuity and Stifel are joint book-running managers for the offering.

The company announced plans in October to go public in a SPAC deal that valued the brand at $415 million. The SPAC deal made the iconic adult-entertainment brand public for the second time in its history.

In April, PLBY Group said it was launching an NFT art gallery on Nifty Gateway’s blockchain-powered marketplace.

"We are currently exploring and anticipate embracing digital assets and cryptocurrencies in the future," the filing said. "The technologies supporting these digital assets like blockchain and non-fungible tokens ('NFT') are new and rapidly evolving."