Rosetta Stone 2009 Annual Report Download - page 42

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Table of Contents
COMPARISON OF 8 MONTH CUMULATIVE TOTAL RETURN*
Among Rosetta Stone Inc., The NYSE Composite Index
And SIC code 7372 index
*$100 invested on 4/16/09 in stock or index, including reinvestment of dividends.
Fiscal year ending December 31.
Use of Proceeds from Public Offering of Common Stock
On April 15, 2009, our registration statement (File No. 333-153632) was declared effective for our initial public offering, pursuant to which we
registered the offering and sale of 3,125,000 shares of common stock by Rosetta Stone Inc. and the associated sale of 3,125,000 shares of common stock by
funds associated with ABS Capital Partners and Norwest Equity Partners VIII, LP (collectively, the "Private Equity Funds") and the additional sale pursuant
to the underwriters' over-allotment option for an additional 937,500 shares of common stock by the Private Equity Funds, at a public offering price of $18.00
per share. The offering closed on April 21, 2009. The managing underwriters were Morgan Stanley & Co. Incorporated and William Blair & Company, LLC.
As a result of the offering, we received net proceeds of approximately $49.0 million, after deducting underwriting discounts and commissions of
$3.9 million and additional offering-related expenses of approximately $3.3 million. In April 2009, we used $7.9 million to satisfy the federal, state and local
withholding tax obligations associated with the "net issuance" of stock grants we made to 10 of our key employees, including executive officers, on April 15,
2009. In April 2009, we used $9.9 million of the net proceeds to repay the outstanding balances under our revolving line of credit with Wells Fargo. We
anticipate that we will use the remaining net proceeds from our initial public offering for working capital and other general corporate purposes, which may
include the acquisition of other businesses, products or technologies. We do not, however, have agreements or commitments for any specific acquisitions at
this time. Pending such uses, we plan to invest the net proceeds in short-term, interest-bearing, investment grade securities.
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