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Shoals Technologies to launch share offering to fund tax receivable pact

Shoals Technologies (NASDAQ:SHLS) -9.4% post-market Wednesday after announcing a public offering of an aggregate 20M common shares, with an underwriters option to purchase up to an additional 3M shares.

The company is offering 2M common shares, and selling stockholders including company founder Dean Solon are offering 18M shares.

Shoals (SHLS) said it will use the proceeds from its offering to help fund the exercise of its right to terminate a Tax Receivable Agreement in exchange for consideration of $58.1M payable in cash.

Shoals (SHLS) also said CEO Jason Whitaker will step down from his position early next year due to health reasons.