Retailer Wet Seal to raise $25-30mn via rights issue

04 Sep '14

2 min read

NASDAQ-listed womenswear specialty retailer - The Wet Seal, Inc. said it intends to raise equity capital between $25-30 million via rights offering, through the sale of shares of its Class A common stock to its stockholders.

Wet Seal anticipates that it will distribute, at no charge, non-transferable subscription rights to its holders of common stock as of a record date which will be established in the future.

The subscription rights will entitle the holders thereof to purchase common shares at a subscription ratio and at a cash subscription price which has yet to be determined.

The retailer said the distribution of the rights and the commencement of the rights offering may occur only after a registration statement to be filed by it with the Securities and Exchange Commission (SEC) becomes effective.

However, the retailer expects that it will commence the rights offering in the third or fourth quarter of the current fiscal year.

Meanwhile, Edmond Thomas who earlier served as CEO at Wet Seal between 2007 and 2011 is rejoining Wet Seal as CEO and a member of the Board of Directors and replaces John Goodman, the current CEO.

Wet Seal also announced that Adam Rothstein has been appointed Chairman of the Board of Directors, effective October 1, 2014. Additionally, Gregory Taxin, President of Clinton Group, Inc., will also join the Board of Directors.

The Wet Seal, Inc., a pioneer in fast fashion retailing, sells apparel, footwear and accessories designed for teen girls and young women through 531 stores in 47 US states and Puerto Rico. (AR)

Fibre2fashion News Desk - India

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