The transactions included a public offering of 15,025,270 shares of its common stock at $1.05 per share, resulting in gross proceeds of $15.8 million, and a sale of $21.8 million in principal amount of 7.25% convertible notes in a private placement. The notes will automatically convert into approximately 20.7 million shares of dELiA*s common stock upon stockholder approval.
The Company intends to use the net proceeds, after transaction expenses, for working capital and general corporate purposes, including the repayment of a portion of the outstanding amounts under their existing revolving credit agreement with Salus Capital Partners, LLC. The Company cannot use the proceeds from the sale of the notes until receiving stockholder approval.
Tracy Gardner, Chief Executive Officer, commented, “These transactions provide us with a significantly improved capital structure, affording us additional runway to execute on our vision. We are excited to have built a highly talented leadership team. We are working hard to rejuvenate the business to realize our long term growth potential for the dELiA*s brand.”
Janney Montgomery Scott LLC acted as the sole book-running manager and sole placement agent for the public offering and private placement transactions, respectively.
A shelf registration statement on Form S-3 relating to the public offering of the shares of common stock described above was filed with the Securities and Exchange Commission (the "SEC") and declared effective on September 7, 2012.
About dELiA*s, Inc.
dELiA*s, Inc. is a multi-channel retail company primarily marketing to teenage girls. It generates revenue by selling apparel, accessories and footwear to consumers through its website, direct mail catalogs, and mall-based retail stores.
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