Jeantex Group gets $10m equity financing from Cornell Capital
04 Feb '06
2 min read
Branded apparel maker Jeantex Group Inc announced that it has signed a Standby Equity Distribution Agreement with Cornell Capital Partners LP that establishes $10 million equity financing that the company can use to expand its operating platform over the next two years.
The SEDA signed agreement allows Jeantex to raise up to $450,000 at a time by selling shares of common stock to Cornell. Although the company is not required to draw down on the line of credit, if Jeantex chooses to do so and meets certain requirements, including the filing of a registration statement, then the SEDA requires Cornell to buy the stock at a discount to the prevailing market price.
The number of shares that Cornell can obtain in any installment is limited to a 9.99 percent cap on the beneficial ownership that Cornell and its affiliates may have at the time.
Jeantex Group Chairman and CEO, Henry Fahman, said, "We are pleased to have successfully secured this funding with Cornell Capital. We believe this investment will strengthen our financial position and will allow us greater flexibility to execute our growth strategy through private label manufacturing, branded sales, auxiliary denim services, and strategic acquisitions. While we have no obligation to sell shares under this firm commitment from Cornell, the SEDA will be there if and when we need it."
Jeantex Group Inc, through its wholly owned subsidiary Jeantex Inc, engages in the design, development, manufacturing, and marketing of branded and private label apparel.
The company is a majority owner of Yves Castaldi Corp, which designs high end apparel under the 'Just Yves,' 'I Generation,' 'Instinct Yves,' and Yves Castaldi Raw Denim brands, and also manufactures and markets new lines of uniquely designed high-quality jeans, T-Shirts, and accessories under the "Bone People" trademark.
20240830145952.gif)
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
