Allbirds is selling for $39 million. It raised nearly 10 times that amount in its IPO.

Allbirds, the wool sneaker marque that became a benignant of unofficial azygous for the Silicon Valley set, has agreed to merchantability each of its assets and intelligence spot to American Exchange Group for $39 million — which is astir one-tenth of the $348 cardinal it raised successful its 2021 IPO and a fraction of the much than $4 cardinal valuation it concisely commanded connected its archetypal time of trading.

The woody inactive needs shareholder support and is expected to adjacent successful the 2nd quarter, with proceeds distributed to stockholders sometime successful the 3rd quarter. Shares jumped 36% connected the quality successful after-hours trading. The banal had closed Monday astatine $2.98, giving the institution a marketplace headdress of $24.5 cardinal — meaning the $39 cardinal merchantability terms really represented a premium to wherever shares were already trading.

The brand’s illness has been well-documented. After going public, Allbirds expanded aggressively into carnal retail and adjacent merchandise categories — leggings, jackets, show moving shoes — that didn’t link with its halfway customers. Losses stacked up a a result; co-founder Tim Brown aboriginal admitted the accelerated maturation had outgo the institution “some of our DNA.“

American Exchange Group is simply a privately held, 18-year-old marque absorption steadfast and portfolio institution that besides owns Aerosoles and Jonathan Adler.