Shopify to sell five million treasury shares

Shopify says it plans to sell five million treasury shares as part of an offering that will also see a number of insiders and early investors sell some of their shares in the company.

In total, 7.5 million shares in the Ottawa-based e-commerce firm will be offered.

Shopify itself will see the proceeds of the five million treasury shares. The exact offering price will vary depending on where the stock is trading when it goes ahead.

On Aug. 16, shares in Shopify (TSX:SH) traded between $47.66 and $50.71, suggesting the offering could raise about $240 million for the company.

The company plans to use the proceeds to “to strengthen our balance sheet, providing us flexibility to fund our growth strategies” it said in a filing with securities regulators in the United States.