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Innovo expects 2007 2Q sale to grow by 45-50%
29 Jun '07
2 min read
Innovo Group Inc announced that, on June 27, 2007, it raised $2 million of equity capital through a private placement of its common stock with two current accredited investment entities controlled by William Sweedler and Barry Sternlicht, who were investors in the Company's December 2006 equity financing transaction.
Under the terms of the financing, the Company received $2 million for the sale of 1.6 million unregistered shares of its common stock at a price that was approximately a 9% discount to market.
The Company also issued to the investors warrants to purchase an additional 480,000 shares at an exercise price equal to the closing price of the Company's common stock as of June 27, 2007.
The Company intends to use the proceeds of the offering to fund the continued growth of its Joe's Jeans business.
Marc Crossman, President and CEO of the Company, commented, "The growth of our Joe's business continues to surpass our own internal sales projections, and we are anticipating growth of approximately 45-50% in our net sales in the second quarter of 2007 versus the second quarter of 2006."
We believe that this additional equity capital from current investors will allow us to keep up with this growth demand that we are experiencing. We are pleased to have the continued support of these investors who have taken a larger stake in our Company.
"The funds will strengthen our balance sheet and enable us to continue our expansion as we grow the Joe's Jeans brand." Pacific Wave Partners Limited acted as a financial advisor to the Company.
The Company also announced that it plans to conduct a conference call to discuss financial results for the second quarter ended May 26, 2007 on Tuesday, July 10, 2007 at 4:30 PM Eastern Time. The call will be hosted by Marc Crossman, President and Chief Executive Officer of the Company.
Under the terms of the financing, the Company received $2 million for the sale of 1.6 million unregistered shares of its common stock at a price that was approximately a 9% discount to market.
The Company also issued to the investors warrants to purchase an additional 480,000 shares at an exercise price equal to the closing price of the Company's common stock as of June 27, 2007.
The Company intends to use the proceeds of the offering to fund the continued growth of its Joe's Jeans business.
Marc Crossman, President and CEO of the Company, commented, "The growth of our Joe's business continues to surpass our own internal sales projections, and we are anticipating growth of approximately 45-50% in our net sales in the second quarter of 2007 versus the second quarter of 2006."
We believe that this additional equity capital from current investors will allow us to keep up with this growth demand that we are experiencing. We are pleased to have the continued support of these investors who have taken a larger stake in our Company.
"The funds will strengthen our balance sheet and enable us to continue our expansion as we grow the Joe's Jeans brand." Pacific Wave Partners Limited acted as a financial advisor to the Company.
The Company also announced that it plans to conduct a conference call to discuss financial results for the second quarter ended May 26, 2007 on Tuesday, July 10, 2007 at 4:30 PM Eastern Time. The call will be hosted by Marc Crossman, President and Chief Executive Officer of the Company.
Innovo Group Inc
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