dELiA*s to raise $44.1mn via private placement transaction

19 Feb '14

2 min read

dELiA*s, Inc., a multi-channel retail company primarily marketing to teenage girls, announced that it has entered into definitive agreements for a $44.1 million private placement transaction.

The Company has agreed to sell 199,834 shares of its Series B convertible preferred stock for an aggregate purchase price of approximately $20.0 million, and to sell approximately $24.1 million in principal amount of 7.25% secured convertible notes.

Each share of preferred stock is convertible into 125 shares of the Company’s common stock at a conversion price of $0.80, a premium of approximately 7% over the closing price of the Company’s common stock on February 14, 2014.

The notes will automatically convert into 241,166 shares of the Company’s Series B convertible preferred stock upon stockholder approval of an amendment to the Company’s certificate of incorporation that would increase the Company’s authorized common stock by an amount to allow conversion of the shares of Series B convertible preferred stock issuable under the notes.

The Company plans to seek stockholder approval within 120 days of the closing of the private placement. The private placement is expected to close, subject to the satisfaction of customary closing conditions.

About dELiA*s, Inc.

dELiA*s, Inc. is a multi-channel retail company primarily marketing to teenage girls. It generates revenue by selling apparel, accessories and footwear to consumers through its website, direct mail catalogs and mall-based retail stores.

dELiA*s

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