Boston Omaha announces sale of 3.14M shares of Class A common stock
Boston Omaha completed the subsequent closing of its previously announced sale of Class A common stock, issuing 3,137,768 shares of Class A common stock for an aggregate purchase price of approximately $73,110,000. In the initial closing, dated March 6, 2018, the Company sold 3,300,000 shares of Class A common stock for an aggregate purchase price of $76,890,000. Both the initial and subsequent closings were pursuant to the Purchase Agreement among the Company and certain purchasers, dated February 22, 2018, for the sale of up to $150,000,000 of unregistered Class A common stock with all shares being sold at $23.30 per share. The purchasers include three limited partnerships, two of which are managed by The Magnolia Group, LLC as their general partner. Boulderado Group, LLC serves as the general partner of the third partnership. The shares being purchased under this private placement are in addition to both shares of Class A common stock and Class B common stock owned by different investment partnerships managed by The Magnolia Group, LLC and Boulderado Group, LLC, which share ownership remains unchanged. The transaction was approved by a special committee of the Company's Board of Directors with the advice of independent legal counsel and an independent investment banking firm which provided a fairness opinion to the special committee. After the subsequent closing, the Company now has 20,666,017 shares of Class A common stock and 1,055,560 shares of Class B common stock issued and outstanding and, as a result, estimated book value of over $14 per share.