Mohawk Acquires Assets Of Healing Solutions; Raises 2021 Revenue Outlook

(RTTNews) - Mohawk Group Holdings, Inc. (MWK) acquired the assets of Healing Solutions, LLC, an online seller of essential oils. As consideration, Mohawk paid approximately $15.3 million in cash and issued approximately 1.4 million shares of common stock. The company will issue approximately 170,000 shares of common stock as consideration related to inventory being acquired. The company also agreed to issue to Healing Solutions and certain consultants up to a maximum of approximately 736,912 shares within the next 15 months.

For 2021, Mohawk now expects net revenue to be in the range of $340 million to $370 million, up from prior guidance of $290 million to $320 million, reflecting the addition of the Healing Solutions business. Adjusted EBITDA estimate for the full year is a range of $28 million to $32 million.

Mohawk also announced the issuance of a Senior Secured Note to an institutional lender. The company received gross proceeds of $14.0 million in exchange for the Senior Secured Note with an aggregate principal amount of $16.5 million with a bullet maturity in 24 months. Mohawk Group issued to the institutional lender warrants to purchase an aggregate of 469,931 shares of the company's common stock at a strike price of $25.10.