CVSL, which acquires and improves the operations of small direct selling businesses, announced terms for its uplisting to the NYSE MKT on Tuesday. The Plano, TX-based company plans to raise $60 million by offering 6.7 million shares at a price range of $8 to $10. At the midpoint of the proposed range, CVSL would command a market value of $308 million.
It is currently traded on the OTCQX Marketplace under the symbol CVSL, and has a market value of about $293 million, down from $500 million when it last filed in early September ($250 million when it first filed in May).
CVSL was acquired by Chairman and CEO John Rochon, the former head of Mary Kay. Its seven portfolio companies’ industries include home improvement, gourmet foods, skin care and nutritionals. The holding company builds these independent businesses using its expertise in e-commerce, social media and micro-enterprise strategy as well as bringing efficiencies in finance, IT and the supply chain.
Net sales jumped 122% to $41 million for the six months ended June 30, 2014 due to recent acquisitions. Its operating loss widened to $7 million from $4 million due to higher commissions and incentives and SG&A as a percent of revenue because of the