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

Textiles | On 19th Jan 2017

Union Budget: Textile sector expects excise duty revisions

Excise duty on man-made fibres should be reduced to bring it on par...

Union textiles minister Smriti Irani at the inauguration of IIGF in New Delhi with textiles secretary Rashmi Verma and other dignitaries. Courtesy: PIB

Apparel/Garments | On 19th Jan 2017

Ministry to reimburse apparel exporters for state levies

The textile ministry has received a sum of Rs 500 crore from the...

Textiles | On 19th Jan 2017

DOMOTEX 2018 features new exhibition layout

The trade fair for floor coverings DOMOTEX 2018, which begins January ...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Johan Berlin
InvestKonsult Sweden AB

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

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search