NEW YORK (TheStreet) -- Shares of action camera maker GoPro (GPRO) are slipping in early trading after the company filed to sell shares in a secondary offering of stock and its CEO acknowledged he plans to sell some of his stake as part of the offering. In a note to employees, however, the executive added that he intends to be a "significant shareholder in GoPro for a long time."
WHAT'S NEW: GoPro filed to sell $800M in common stock for shareholders. JPMorgan, Barclays, Morgan Stanley and Citigroup are acting as lead book running mangers for the stock offering. The company disclosed in a regulatory filing that Nicholas Woodman, GoPro’s Chief Executive Officer, sent an email message to company employees related to the offering, in which he wrote that such a "follow-on and secondary" offering is a "relatively common occurrence following an IPO" that allows a company to raise additional capital while providing early investors and employees with vested options the opportunity to realize a return on their "hard work and dedication." Woodman said the company expects to raise approximately $100M of new capital for the company via the offering, which will provide additional resources to "invest in people, products, potential acquisitions, and infrastructure to help us achieve our long-term vision." Woodman also said the offering is meant to facilitate a "more orderly and gradual sale of shares than what might otherwise occur when the IPO lock-up ends on December 22," adding larger shareholders that participate in this offering will be signing a new 90-day lock-up agreement that to help further this goal. Woodman acknowledged he plans to sell a portion of his holdings in GoPro, but said "no one should misunderstand my commitment to the company or our vision. As I told investors on our earnings call last week, I plan to be a significant shareholder in GoPro for a long time."