Insurance provider and technology company Lemonade (NYSE: LMND) announced after the market close today that it would commence a secondary stock offering. In an S-1 filed with the Securities and Exchange Commission, the company said it would offer 3 million shares of common stock for sale. The underwriters will also have the option to sell an additional 678,647 shares depending on investor demand.
Lemonade also disclosed that “selling stockholders,” which include certain insiders and early investors, would offer an additional 1,524,314 shares for sale. It’s important to note that Lemonade will not receive any of the proceeds from this additional sale. The company has not yet disclosed the price of the shares that will be offered for sale. The stock fell about 7% in after-hours trading on the news.