Global Apparel Market – An Overview | Watch NOW! | Ad
Home / Knowledge / News / Fashion / China Shoe Holdings inks ELC accord with Magellan Global Fund
China Shoe Holdings inks ELC accord with Magellan Global Fund
25
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

Trump signs revised free trade agreement with S Korea

Textiles | On 25th Sep 2018

Trump signs revised free trade agreement with S Korea

President Donald Trump signed a revised free trade agreement with...

L-R: Jonathan Akeroyd, Donatella Versace, John D Idol. Courtesy: Rahi Rezvani

Fashion | On 25th Sep 2018

Michael Kors to acquire Versace; to be renamed Capri

Michael Kors Holdings Limited, a global fashion luxury group, has...

'India can take up lack of capacity in US, China markets'

Textiles | On 25th Sep 2018

'India can take up lack of capacity in US, China markets'

India can now take up the lack of capacity in the US and Chinese...

Interviews View All

Angelina Francesca Cheang, MY ANJE

Angelina Francesca Cheang
MY ANJE

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Darshan Mehta, Infinium Polychem

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Amrit Sethia, SOIE

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Manoj Sorathiya,

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Kalai Selvi,

Kalai Selvi

Vidyashilp Academy in Bengaluru is the country's first Fairtrade School....

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Alfonso Marra, Klopman

Alfonso Marra
Klopman

It was in 1968 that Klopman introduced the concept of poly/cotton workwear ...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

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

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


October 2018

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

news category


Related Categories:

Advanced Search