Casper Sleep, Inc. (NYSE: CSPR) is engaged within the development, marketing and sale of sleep products. The company’s flagship product is its Casper mattress, but also offers pillows, bedding, and other products engineered to give consumers a better night sleep. Shares of the sleeping company are skyrocketing 85% through early trading on Monday, November 15, 2021. Over the past three months, Casper Sleep has seen average daily volume of 757,050 shares. However, volume of 11.6 million shares or dollar volume of $76.33 million, has already exchanged hands through early trading Monday.
Shares of Casper Sleep are surging after the company announced that it has entered into a definitive agreement to be acquired by Durational Capital Management, L.P. Under the terms of the acquisition, Durational Capital will pay Casper Sleep shareholders $6.90 per share in cash, which represents a 94% premium compared to the close price on Friday, November 12, 2021.
Casper Sleep’s Board of Directors has already unanimously approved the transaction and recommends shareholders vote to adopt the agreement. If shareholders approve the merger, management estimates the deal will close sometime during the first quarter of 2022.
“We are delighted to announce this transaction with Durational Capital Management that creates immediate and substantial value for shareholders, and allows Casper to move forward on strong financial footing,” said Casper’s Co-Founder and Chief Executive Officer, Philip Krim. “In consultation with outside advisors, Casper’s Board of Directors evaluated a range of strategic and financial alternatives over several months and determined, after careful consideration, that the transaction proposed by Durational is superior to all other alternatives available. With a commitment to maximizing value for all shareholders, the Board unanimously supports the offer from Durational and recommends that shareholders approve the transaction. This agreement offers a promising opportunity to realize the highest value for our stockholders while providing Casper with much needed capital to execute on future initiatives to sustain and grow its business.”
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