Karat Packaging Inc. Announces Proposed Secondary Offering of Common Stock
September 07 2023 - 3:30PM
Karat Packaging Inc. (Nasdaq: KRT) (“Karat” or the “Company”), a
specialty distributor and manufacturer of disposable foodservice
products and related items, today announced the commencement of a
proposed public offering of Karat’s common stock by certain members
of the Company’s management team (the “Selling Stockholders”). The
Selling Stockholders will also grant the underwriter a 30-day
option to purchase up to an additional 15% of the shares of Karat’s
common stock offered in the offering from the Selling Stockholders.
Karat is not offering
any shares of its common stock in this offering and will not
receive any proceeds from the sale of shares by the Selling
Stockholders.
Lake Street Capital
Markets, LLC is acting as sole book-running manager for the
proposed offering.
The offering of these
securities is being made pursuant to a shelf registration statement
on Form S-3 (File No. 333-268397), which was filed with the U.S.
Securities and Exchange Commission (the “SEC”) on November 15, 2022
and declared effective on November 28, 2022. The offering will be
made only by means of a prospectus supplement and an accompanying
prospectus. A copy of the prospectus and prospectus supplement
relating to the offering may be obtained, when available, by
visiting the SEC’s website at www.sec.gov. Alternatively, copies of
the prospectus and prospectus supplement relating to the offering
may be obtained by contacting: Lake Street Capital Markets, LLC,
Attn: Syndicate Department, 920 Second Avenue South, Suite 700,
Minneapolis, MN 55402, by calling (612) 326-1305, or by emailing
syndicate@lakestreetcm.com.
This press release
shall not constitute an offer to sell or a solicitation of an offer
to buy these securities, nor shall there be any offer or 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 Karat
Packaging Inc.
Karat Packaging Inc.
is a specialty distributor and manufacturer of a wide range of
disposable foodservice products and related items, primarily used
by national and regional restaurants and in foodservice settings
throughout the United States. Its products include food and
take-out containers, bags, tableware, cups, lids, cutlery, straws,
specialty beverage ingredients, equipment, gloves and other
products. The company’s eco-friendly Karat Earth® line offers
quality, sustainably focused products that are made from renewable
resources. Karat Packaging also offers customized solutions,
including new product development and design, printing, and
logistics services.
Forward
Looking Statements
Statements made in
this release that are not statements of historical or current facts
are “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995, including, but not
limited to, statements regarding the proposed offering. We caution
readers that forward-looking statements are predictions based on
our current expectations about future events, and are subject to
risks and uncertainties. Such risks and uncertainties may
cause actual results to differ materially from those anticipated in
the forward-looking statements. Our actual results,
performance, or achievements could differ materially from those
expressed or implied by the forward-looking statements as a result
of a number of factors, including the risks discussed under the
heading “Risk Factors” discussed under the caption “Item 1A. Risk
Factors” in Part I of our most recent Annual Report on Form 10-K or
any updates discussed under the caption “Item 1A. Risk Factors” in
Part II of our Quarterly Reports on Form 10-Q and in our other
filings with the Securities and Exchange Commission. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise that occur after that date, except as
required by law.
Investor
Relations and Media Contact
PondelWilkinson
Inc.Judy Lin or Roger Pondel310-279-5980IR@karatpackaging.com
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