09:29 AM EDT, 07/02/2024 (MT Newswires) -- Douglas Elliman ( DOUG ) shares were rising past 14% in recent premarket activity after the company said Tuesday it obtained a $50 million growth investment from Kennedy Lewis Investment Management.

Douglas Elliman ( DOUG ) issued $50 million in convertible notes due July 2, 2029 to funds advised by Kennedy Lewis, the company said.

The notes pay interest at a rate of 7% a year payable in cash, or, at Douglas Elliman's ( DOUG ) election, 8% a year paid in kind, due semi-annually, the company said. The notes are convertible into shares at an initial conversion rate equal to $1.50, it added.

Under the deal, Kennedy Lewis will have the right, subject to some conditions, to nominate one director to Douglas Elliman's ( DOUG ) board.

David Chene from Kennedy Lewis and Patrick Bartels Jr. from Redan Advisors will join Douglas Elliman's ( DOUG ) board, succeeding Ronald Kramer and Lynn Mestel after the transaction closes, Douglas Elliman ( DOUG ) said.

Douglas Elliman ( DOUG ) also said that its preliminary unaudited gross transaction value for Q2 is expected to be between $10.25 billion and $11.25 billion, compared with $7.1 billion in Q1.

Price: 1.4401, Change: +0.18, Percent Change: +14.29