Cadre Holdings Announces Launch of Public Primary and Secondary Offering of Common Stock

Rhea-AI Summary

Cadre Holdings, Inc. (NYSE: CDRE) announces a public offering of 3,475,000 shares of common stock, with 2,200,000 shares from the company and 1,275,000 shares from a Selling Stockholder. The net proceeds will be used for general corporate purposes, with BofA Securities as the lead book-running manager for the offering.

Insights

Financial Analyst

The announcement of Cadre Holdings, Inc.'s public offering is a strategic move that has the potential to affect the company's capital structure and liquidity. The issuance of 2,200,000 shares by the company suggests a drive to raise capital for general corporate purposes, which could include expansion, debt reduction, or other investments. It is important to analyze the earnings per share (EPS) dilution that may result from the increased number of shares outstanding. Additionally, the participation of a significant shareholder, Kanders SAF, LLC, in selling 1,275,000 shares could be indicative of the shareholder's view on the company's valuation or a need for liquidity.

Investors should consider the company's current financial health and future prospects when evaluating the potential impact of this offering. The underwriters' option to purchase an additional 521,250 shares could further dilute current shareholders but also provides a buffer for the company to raise additional funds if there is enough investor demand. The role of BofA Securities as the lead book-running manager is also a critical factor, as their reputation and distribution capabilities can significantly influence the offering's success.

Market Research Analyst

From a market perspective, the timing and size of the offering are crucial. The safety equipment industry has been experiencing growth, driven by increasing safety regulations and heightened awareness of workplace hazards. Cadre Holdings, Inc.'s position as a global leader in this sector could make the offering attractive to investors seeking exposure to this market. However, market conditions, investor sentiment and industry trends must be favorable to ensure a successful capital raise.

It is also pertinent to observe the market response to the offering, as it can reflect the investment community's confidence in the company's growth strategy and governance, especially considering the involvement of the CEO in the selling shareholder entity. The market's reception to the offering will provide insights into the perceived value of Cadre Holdings, Inc. and could influence the stock's performance in the short term.

Legal Expert

The legal aspects of the public offering, such as the registration statement on Form S-3 and the preliminary prospectus supplement, are key documents that provide investors with detailed information about the company's financials, risks and the specifics of the offering. The fact that these documents have been declared effective by the SEC is a crucial step in the process, ensuring regulatory compliance and transparency.

Investors should note that the offering is subject to securities laws and the disclaimer regarding the sale of securities not constituting an offer in states or jurisdictions where it would be unlawful is a standard legal precaution. The availability of these documents on the SEC's EDGAR website or through BofA Securities allows for due diligence, enabling investors to make informed decisions based on the disclosed risks and potential rewards associated with the offering.

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- Cadre Holdings, Inc. (NYSE: CDRE) (“Cadre” or “the Company”), a global leader in the manufacturing and distribution of safety equipment for professionals, today announced the commencement of a proposed public offering of 3,475,000 shares of its common stock, of which 2,200,000 shares of common stock will be offered by the Company and 1,275,000 shares of common stock will be offered by Kanders SAF, LLC (the “Selling Stockholder”), an entity wholly-owned by Mr. Warren B. Kanders, the Chairman of the Company’s Board of Directors and Chief Executive Officer. Cadre intends to grant the underwriters a 30-day option to purchase up to an additional 521,250 shares of common stock.

Cadre intends to use the net proceeds received from the offering for general corporate purposes. The Selling Stockholder will receive the net proceeds from the sale of shares of common stock sold by it in the offering.

BofA Securities is acting as lead book-running manager for the offering.

The Company has filed a registration statement on Form S-3 (Registration No. 333-271328) (including a base prospectus), which has been declared effective by the Securities and Exchange Commission (“SEC”). The Company has also filed a preliminary prospectus supplement with the SEC for the offering. The offering will be made only by means of a prospectus supplement and an accompanying prospectus.

You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and accompanying prospectus, as well as copies of the final prospectus supplement, once available, may be obtained by contacting: BofA Securities, 201 North Tryon Street, Charlotte, NC 28255, Mail Code NC1-022-02-25, Attention: Prospectus Department or by email at dg.prospectus_requests@bofa.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Cadre

Headquartered in Jacksonville, Florida, Cadre is a global leader in the manufacturing and distribution of safety products. Cadre's equipment provides critical protection to allow users to safely and securely perform their duties and protect those around them in hazardous or life-threatening situations. The Company's core products include body armor, explosive ordnance disposal equipment, duty gear and nuclear safety products. Our highly engineered products are utilized in over 100 countries by federal, state and local law enforcement, fire and rescue professionals, explosive ordnance disposal teams, and emergency medical technicians. Our key brands include Safariland® and Med-Eng®, amongst others.

Forward-Looking Statements

Except for historical information, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include but are not limited to all projections and anticipated levels of future performance. Forward-looking statements involve risks, uncertainties and other factors that may cause our actual results to differ materially from those discussed herein. Any number of factors could cause actual results to differ materially from projections or forward-looking statements, including without limitation, our ability to complete the common stock offering on the proposed terms, or at all; and our expectations related to the use of proceeds from the shares of common stock offered by the Company. More information on potential factors that could affect the Company’s financial results are more fully described from time to time in the Company’s public reports filed with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release, and speak only as of the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240313552270/en/

Gray Hudkins

Cadre Holdings, Inc.

203 550 7148

gray.hudkins@cadre-holdings.com

Investor Relations:

The IGB Group

Leon Berman / Matt Berkowitz

212 477 8438 / 212 227 7098

lberman@igbir.com / mberkowitz@igbir.com

Media Contact:

Jonathan Keehner / Andrew Siegel

Joele Frank, Wilkinson Brimmer Katcher

212 355 4449

Source: Cadre Holdings, Inc.

FAQ

What is the ticker symbol of Cadre Holdings, Inc. mentioned in the press release?

The ticker symbol is CDRE.

How many shares of common stock are being offered in the public offering?

3,475,000 shares, with 2,200,000 shares from the company and 1,275,000 shares from the Selling Stockholder.

Who is the Selling Stockholder mentioned in the press release?

The Selling Stockholder is Kanders SAF, LLC, an entity wholly-owned by Mr. Warren B. Kanders, the Chairman of the Company’s Board of Directors and Chief Executive Officer.

What will Cadre Holdings, Inc. use the net proceeds received from the offering for?

The net proceeds will be used for general corporate purposes.

Which company is acting as the lead book-running manager for the offering?

BofA Securities is acting as the lead book-running manager for the offering.