Enhanced Investments - Financial Portal

AWH Capital, LP Urges Purple Innovation (NASDAQ: PRPL) to Reject Coliseum's Takeover Offer

Published: 2022-12-15 15:02:00 ET

DALLAS, Dec. 15, 2022 /PRNewswire/ -- The following is a letter from AWH Capital, LP to the chairman of Purple Innovation's board of directors in regard to the recent acquisition proposal by Coliseum Capital Management.

December 15, 2022Via FedEx

Paul ZepfChairman of the BoardPurple Innovation, Inc.4100 North Chapel Ridge Road, Suite 200Lehi, UT 84043

Dear Paul,

We are stockholders of Purple Innovation, Inc. ("Purple"). We believe that Purple currently trades at a substantial discount to intrinsic value and could, over time, appreciate significantly. As such, we believe the recent acquisition proposal by Coliseum Capital Management meaningfully undervalues Purple and should be rejected.

In a challenging year for the mattress industry, Purple CEO Rob DeMartini and his team have achieved quarterly profitability while making significant improvements to its operating structure. These improvements include: focusing marketing spend on more effective channels; optimizing the manufacturing footprint; addressing balance sheet concerns; and completing an accretive acquisition that enhances the premium end of its product portfolio. The company is now preparing to launch new products that will increase the breadth of its offering and provide better differentiation between pricing tiers while reducing input costs.

The mattress industry is generally resilient over time and now appears to be stabilizing. We are pleased to see Rob DeMartini as CEO given his history of achievement as the CEO of New Balance, his understanding of the value of the Purple brand, and his focus on execution. Further, we have a strong degree of confidence in Purple's competitive positioning given its leadership role in the nascent but growing gel grid segment of the mattress industry.

We urge the company to fulfill its fiduciary duty to all stockholders and reject Coliseum's proposal.

Sincerely,

Austin Hopper Mason BourneAWH Capital, LP

AWH Capital, LP is a private investment partnership based in Dallas, Texas.

View original content:https://www.prnewswire.com/news-releases/awh-capital-lp-urges-purple-innovation-nasdaq-prpl-to-reject-coliseums-takeover-offer-301703567.html

SOURCE AWH Capital

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.