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Casper Sleep Inc. (CSPR) Reports Disappointing First Quarter 2020 Financials

On February 6, 2020, Casper completed its IPO offering 8.35 million shares of common stock at $12.00 per share and raising $88 million in net proceeds. In its Registration Statement, Casper assured investors that “[o]verall business profitability will be driven” by “continued net revenue growth,” “gross margin improvements,” and operational efficiencies. Then, on April 21, 2020, Casper announced it was taking significant actions to improve its cash position and business model, including downsizing its global operations and sales team totaling a 21% loss in workforce. That same day, the Company also revealed the resignation of its CFO and COO. Finally, on May 12, 2020, Casper announced its first quarter 2020 financial results, which revealed a net loss of $34.5 million and an adjusted EBITDA loss of $22.9 million, representing year-over-year increases of almost 98% and 60% respectively. Since the IPO, Casper stock consistently trades well below the IPO price, currently trading at around $9, representing a decline of 25% from its IPO price.

If you are a concerned shareholder who owns shares in Casper and would like more information about your rights and potential remedies you can call us toll-free at 855-846-6529 or send us a message via the Shareholder Information below or by email to tmiles@timmileslaw.com.

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