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American Apparel calls for redemption of all outstanding warrants
07 Feb '08
4 min read
The “fair market value” means the average reported last sale price of shares of the American Apparel's common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the warrant holders, which equals $11.89.
Any fractional share issuable as a result of a cashless exercise will be rounded up to the nearest whole share. Warrant holders who hold their warrants or units through a brokerage account should contact their broker for instructions regarding the exercise of warrants and the payment of the exercise price.
Warrant holders may exercise their warrants at any time prior to March 7, 2008, the date of redemption. If any warrants are not exercised before March 7, 2008, those warrants will be canceled and holders of those warrants will be paid $0.01 per warrant and will no longer have the right to purchase any shares underlying those warrants.
The shares of common stock issuable upon exercise of the warrants have been offered under the company's registration statement, which has been declared effective by the Securities and Exchange Commission.
The offering of the shares of common stock issuable upon exercise of the warrants is being made only by means of a prospectus dated December 13, 2007.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state.
There were originally approximately 16.1 million warrants issued and there are currently approximately 10.3 million warrants that remain outstanding, as of February 5, 2008.
Assuming a cash-based exercise of all outstanding warrants, American Apparel would receive gross proceeds of approximately $61.8 million and there would be a total of approximately 73.4 million shares of American Apparel's common stock issued and outstanding on the redemption date.
Assuming a cashless exercise of all outstanding warrants, the company would receive no cash and there would be approximately 67.8 million shares of American Apparel's common stock issued and outstanding on the redemption date.
Any fractional share issuable as a result of a cashless exercise will be rounded up to the nearest whole share. Warrant holders who hold their warrants or units through a brokerage account should contact their broker for instructions regarding the exercise of warrants and the payment of the exercise price.
Warrant holders may exercise their warrants at any time prior to March 7, 2008, the date of redemption. If any warrants are not exercised before March 7, 2008, those warrants will be canceled and holders of those warrants will be paid $0.01 per warrant and will no longer have the right to purchase any shares underlying those warrants.
The shares of common stock issuable upon exercise of the warrants have been offered under the company's registration statement, which has been declared effective by the Securities and Exchange Commission.
The offering of the shares of common stock issuable upon exercise of the warrants is being made only by means of a prospectus dated December 13, 2007.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state.
There were originally approximately 16.1 million warrants issued and there are currently approximately 10.3 million warrants that remain outstanding, as of February 5, 2008.
Assuming a cash-based exercise of all outstanding warrants, American Apparel would receive gross proceeds of approximately $61.8 million and there would be a total of approximately 73.4 million shares of American Apparel's common stock issued and outstanding on the redemption date.
Assuming a cashless exercise of all outstanding warrants, the company would receive no cash and there would be approximately 67.8 million shares of American Apparel's common stock issued and outstanding on the redemption date.
American Apparel Inc
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