Home / Knowledge / News / Apparel/Garments / Wet Seal to raise $18.5mn through private placement
Wet Seal to raise $18.5mn through private placement
04
Sep '14
Womenswear specialty retailer - The Wet Seal will raise $18.5 million by selling shares of its Class A common stock to a limited number of institutional investors in a private placement.

Wet Seal said it has entered into a securities purchase agreement to sell shares of its Class A common stock to a limited number of institutional investors in a private placement, subject to the terms of the placement, the retailer expects to receive at the closing, gross proceeds from the placement of approximately $18.5 million.

According to Wet Seal, investors in the private placement have agreed to purchase shares of Class A common stock at a per share price equal to the lesser of $1.01, 87.5% of the volume weighted-average price for the 20 consecutive trading day period prior to when the price is set, or if the Company commences a rights offering to its shareholders at a subscription price which is lower than the foregoing, at such a lesser price.

Wet Seal added that it has the right to terminate the anticipated closing of the sale if the volume weighted-average price for its common stock for a 15 consecutive trading day period is below $0.80, subject to investors retaining warrants or receiving a cash payment.

Each investor will also receive, at its option, warrants to purchase additional shares of Class A common stock or a discount to the per share purchase price of four percent, but in no event greater than $0.04 per share. The warrants will be exercisable for five years beginning six months and one day from the date of issuance.

The retailer, who operates 531 stores in 47 states and Puerto Rico, currently expects that the private placement will close in the third or fourth fiscal quarter of the current fiscal year.

Earlier in the day, Wet Seal had said that 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. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Indian govt relaxes cabotage rule for cotton transport

Textiles | On 25th May 2018

Indian govt relaxes cabotage rule for cotton transport

The Government of India has relaxed cabotage rules for transportation ...

Courtesy: Teejay Lanka

Textiles | On 25th May 2018

Teejay Lanka doubles production capacity at Indian mill

Teejay Lanka, one of Sri Lanka’s largest textile manufacturers, has...

Courtesy: Messe Frankfurt/Yarn Expo Autumn edition

Textiles | On 25th May 2018

Yarn Expo Autumn 2018 scheduled earlier

Over 500 exhibitors are expected at the Yarn Expo Autumn 2018, being...

Interviews View All

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search