Home / Knowledge / News / Fashion / China Shoe Holdings inks ELC accord with Magellan Global Fund

China Shoe Holdings inks ELC accord with Magellan Global Fund

Mar '08
China Shoe Holdings announced that it has entered into an equity line of credit agreement ("ELC") with Magellan Global Fund, LP (Magellan) that provides China Shoe with the option to draw down up to $2 million of equity funding by Magellan at any time over a two year period commencing with the effectiveness of a registration statement to be filed by the company.

China Shoe management is pleased to point out that the terms of the financing are beneficial to the long-term growth on the company. Draw downs on the ELC will be at China Shoe's sole discretion.

If China Shoes elects to make a draw under the agreement, the shares to be issued will be priced at an 8% discount to the average closing bid price of China Shoe's shares during the pricing period which is at the time of the draw with a "floor price" of $0.07.

Because there is a floor price, the company will not be subject to a "death spiral" or other dilutive terms. In addition, there are no warrants, stock options or any type of preferred securitization, keeping the transaction simple and straight-forward.

In connection to this transaction, China Shoe has paid to Magellan a non- refundable fee of $40,000 through the issuance of an additional 571,429 restricted shares.

A registration statement relating to these securities will be filed in the short future. Upon effectiveness of the registration statement, an additional fee of $40,000 will be payable to Magellan.

"We aredelighted with the agreement with Magellan Global Fund. The completion of this funding will enable our continual expansion, especially on the execution of our retail strategy," according to Mr. Gu XianZhong, Chairman and CEO of China Shoe.

"In addition, we believe the terms of the equity line of credit agreement is competitive and it provides us with excellent financial flexibility for the future while minimizing dilution to shareholders."

China Shoe Holdings Inc

Must ReadView All

Pic: Shutterstock

Retail | On 1st Dec 2020

British retailer Arcadia enters into administration

UK clothing retail group Arcadia recently entered into administration ...

Pic: Fashion For Good

Textiles | On 1st Dec 2020

Fashion For Good launches Viscose Traceability Project

Fashion for Good, a global initiative to make all fashion good, has...

Pic: European Commission

Textiles | On 1st Dec 2020

Croatian, Belgian, Romanian firms win EUSIC challenge

Snake, a Croatian platform that enables users to wear outfits in...

Interviews View All

Poojaa Kumar Deepak, Zeven

Poojaa Kumar Deepak

Zeven's performance sports apparel is designed for the Indian body type,...

Riddhika Shah, SS Homme

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Smarth Bansal, Colorjet India Limited

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Verena Ruckh,

Verena Ruckh

Brückner Trockentechnik develops, manufactures and supplies textile...

Luciano Sardini,

Luciano Sardini

A consolidated reality in Italy and internationally, IMA Spa is well-known ...

Fan Liyuan,

Fan Liyuan

Chinese company Jiangsu Yingyang Nonwoven Machinery, established in 1993,...

Davide Vigano, Sensoria

Davide Vigano

Sensoria is a leading developer of smart garments and IoMe (Internet of...

Chunyi Zhi, City University of Hong Kong

Chunyi Zhi
City University of Hong Kong

<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...

Ian Russell, Pireta

Ian Russell

UK-based Pireta has developed a unique free-form process to add durable,...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Amiben Shroff, Shrujan

Amiben Shroff

From its modest beginning in the late 1960s, Shrujan has grown into a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

December 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search