Item 5. Market for Registrant’s Common Equity
Item 5. Market for Registrant’s Common
Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
Our Class A common stock is
listed on the Nasdaq Global Market under the symbol “PRPL”. As of March 20, 2023, there were approximately 95 holders of record
of shares of our Class A common stock and 14 holders of record of shares of our Class B common stock. Our Class B common stock is not
listed or quoted on any exchange and is not transferrable by the holders, subject to certain limited exceptions. This number does not
include stockholders for which shares are held in “nominee” or “street” name.
We have not paid any cash
dividends on our common stock to date. The payment of cash dividends in the future will be dependent upon our revenues and earnings, if
any, capital requirements, general financial condition, our compliance with restrictive covenants in the 2020 Credit Agreement and other
future indebtedness that we may incur, opportunities to invest in future growth initiatives, and the discretion of our Board at such time.
Our Board is not currently contemplating and does not anticipate declaring any stock dividends in the foreseeable future.
Comparative Stock Performance
The following graph illustrates
the cumulative total return over the last five years from February 2, 2018 through December 31, 2022, for (i) our Class A common stock,
(ii) the Standard and Poor’s (S&P) 500 Home Furnishings Index, and (iii) the Nasdaq Stock Market (U.S.) Index. The graph assumes
$100 was invested on February 2, 2018 in each of our Class A common stock, the S&P 500 Home Furnishings Index, and the Nasdaq Stock
Market (U.S.) Index, and that any dividends were reinvested. The comparisons reflected in the graph are not intended to forecast the
future performance of our stock and may not be indicative of our future performance. The graph and related information shall not be deemed
to be “soliciting material” or to be “filed” with the Securities and Exchange Commission, nor shall such information
be incorporated by reference into any future filing under the Securities Act or Exchange Act, except to the extent that the Company specifically
incorporates it by reference into such filing.
02/02/18
12/31/18
12/31/19
12/31/20
12/31/21
12/31/22
Purple Innovation, Inc.
$ 100.00
$ 59.49
$ 87.98
$ 332.73
$ 134.04
$ 48.38
S&P 500 Home Furnishings Index
100.00
52.53
66.51
63.88
72.53
40.70
The Nasdaq Stock Market (U.S.) Index
100.00
91.64
123.91
177.99
216.06
144.55
Recent Sales of Unregistered Securities
Coliseum Private Placement
Pursuant
to that certain Subscription Agreement dated February 1, 2018 between the Company and certain investment funds and vehicles affiliated
with or managed by Coliseum, Coliseum holds certain contractual preemptive rights relating to the sale of shares of our Class A common
stock, including the shares of Class A common stock sold in the February 2023 public offering described above. Coliseum currently holds
approximately 44.7% of our outstanding voting power. On February 8, 2023, we agreed with Coliseum that, contingent upon the underwriters
in the February 2023 public offering exercising their option to purchase additional shares of our Class A common stock, we may sell to
Coliseum up to its pro rata share of the Class A common stock sold pursuant to such option in a concurrent private placement at the public
offering price of $4.50 per share (the “Coliseum Private Placement”). This would result in an aggregate of up to approximately
1,610,317 shares of our Class A common stock purchased by Coliseum in the Coliseum Private Placement, which amount would be in addition
to the shares sold in the February 2023 public offering and pursuant to the underwriters’ option to purchase additional shares.
We estimate that the net proceeds from the Coliseum Private Placement, if Coliseum purchases its pro rata share in full, will be approximately
$7.2 million.
Issuer Purchases of Equity Securities
None.
Item 6. [Reserved]
49