Turning Point Brands, Inc. (NYSE:TPB) Enters into At-the-Market Sales Agreement

Turning Point Brands, Inc. disclosed on December 13, 2024, that it has entered into an at-the-market sales agreement with B. Riley Securities, Inc. and Barclays Capital Inc. The agreement pertains to the issuance and sale of shares of the company’s common stock, with an aggregate gross sales price of up to $100 million.

Under the sales agreement, Turning Point Brands will conduct an at-the-market offering through the sales agents, potentially selling shares in various ways, including ordinary brokers’ transactions, through market makers, or on the New York Stock Exchange (NYSE). The sales agents are entitled to a commission of up to 3.0% of the gross sales price of any Placement Shares sold.

The Placement Shares will be sold in accordance with the prospectus forming a part of the company’s shelf registration statement on Form S-3 and a prospectus supplement dated December 13, 2024. Turning Point Brands intends to utilize the net proceeds from these sales for general corporate purposes, including the expansion of manufacturing for their white nicotine pouch brand FRE and joint venture, ALP Supply Co, LLC.

Moreover, the company emphasized that the information provided does not constitute an offer to sell or a solicitation to purchase the discussed Common Stock. Additionally, the agreement involves forward-looking statements subject to risks and uncertainties, where actual events may deviate from the statements made in the Current Report on Form 8-K.

Turning Point Brands highlighted that Milbank LLP provided legal opinions regarding the agreement, and the sales agents, alongside their affiliates, may engage in commercial and investment banking transactions with the company. They have and expect to receive customary compensation and expense reimbursement for these transactions.

Investors are advised to refer to the full text of the sales agreement, attached as Exhibit 1.1 to the Form 8-K, for comprehensive details. Furthermore, potential investors are encouraged to stay informed through various outlets where the company disseminates information, including its website and investor relations website.

The company further stated that new risks and uncertainties may arise intermittently, and it disclaims any obligation to update its forward-looking statements beyond the date mentioned in the Current Report on Form 8-K, except as legally required under federal securities laws. For detailed financial statements and exhibits, please refer directly to Turning Point Brands’ SEC filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Turning Point Brands’s 8K filing here.

About Turning Point Brands

Turning Point Brands, Inc, together with its subsidiaries, manufactures, markets, and distributes branded consumer products. The company operates through three segments: Zig-Zag Products, Stoker’s Products, and Creative Distribution Solutions. Zig-Zag Products segment markets and distributes rolling papers, tubes, finished cigars, make-your-own cigar wraps, and related products, as well as lighters and other accessories under the Zig-Zag brand.