Specialty retailer West 49 Inc completed its previously announced private placement of an aggregate of 7,900,000 common shares at a price of $1.90 per common shares. The common shares were placed by a syndicate of agents led by Desjardins Securities Inc. and assisted by CIBC World Markets Inc. and Northern Securities Inc. (the "Agents"). As partial compensation for their services, the Agents were issued warrants to purchase an aggregate of 474,000 common shares of West 49 at a price of $2.00 per share, exercisable for a period of two years.
Approximately $3.0 million of the net proceeds of the private placement is expected to be applied to reduce West 49's outstanding credit facility. The remainder of the net proceeds from the offering will be used for potential acquisitions and/or to fund new store growth and/or working capital and/or general corporate purposes.
The common shares sold pursuant to the private placement are subject to resale restrictions pursuant to applicable securities law requirements and notably to a hold period expiring January 3, 2006.
West 49 Inc is a specialty retailer of apparel, footwear and accessories, with an emphasis on skateboarding, snowboarding and surfing. The Company targets "Generation Y" customers (ages 10 through 18). West 49 operates 65 stores in seven provinces. It also owns Off The Wall, fashion-forward young women's clothing retailer with 10 stores.
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