Rackspace Technology raised approximately $66 million by selling nearly 24 million shares to Voss Capital and other private investors. The proceeds are intended for general corporate needs, including working capital, capital expenditures and growth initiatives related to GPUs.
- Voss Capital investment: Rackspace issued 18.18 million shares to Voss Capital, on behalf of certain entities and managed accounts, for about $50 million.
- Other investors: The company issued another 5.82 million shares to additional purchasers for about $16 million.
- Implied price: Both portions were sold at approximately $2.75 per share.
- Use of proceeds: Rackspace expects to use the funds for general corporate purposes, including working capital, capital spending and growth capital, with GPU-related initiatives specifically mentioned.
- Share restrictions: The shares were sold in private placements and are restricted from resale unless registered or an exemption applies. Rackspace paid no underwriting discounts or commissions.
The issuance increases Rackspace’s share count, diluting existing shareholders’ ownership proportionally. The announcement does not specify the resulting ownership stakes of the purchasers.