Crumbs Bake Shop negotiates $9.85 million private placement of shares

Company offers 4,456,968 common shares at $2.21 apiece to investors

By Devika Patel

Knoxville, Tenn., Oct. 11 - Crumbs Bake Shop, Inc. arranged a $9.85 million private placement of stock on Oct. 10, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The company will sell 4,456,968 common shares at $2.21 apiece. The per-share price represents a 3.91% discount to the Oct. 9 closing share price of $2.30.

The investors are Special Situations Fund III QP, LP, Special Situations Cayman Fund, LP, Special Situations Private Equity Fund, LP, Buckingham RAF Partners, LP, Buckingham RAF Partners II, LP, Buckingham RAF International Partners Master Fund, LP, Whitney Capital Series Fund LLC - Series LS1, Durban Capital LP, John Mills, P.A.W. Partners, LP, P.A.W. Small Cap Partners, LP, Prism Partners I, LP, Prism Partners III Leveraged, LP, Prism Partner IV Leveraged Offshore Fund, Arthur J. Samberg, Leonard Potter, Frederick Kraegel, Jeffrey Roseman, Mark Klein and Julian Geiger.

Janney Montgomery Scott LLC was the lead financial advisor and Susman Partners LLC doing business as Threadstone Partners was the co-financial advisor.

Settlement is expected Oct. 11.

Proceeds will be used for new store growth and general working capital purposes.

The bakery and cupcake retailer is based in New York.

Issuer:	Crumbs Bake Shop, Inc.
Issue:	Common stock
Amount:	$9,849,899
Shares:	4,456,968
Price:	$2.21
Warrants:	No
Investors:	Special Situations Fund III QP, LP, Special Situations Cayman Fund, LP, Special Situations Private Equity Fund, LP, Buckingham RAF Partners, LP, Buckingham RAF Partners II, LP, Buckingham RAF International Partners Master Fund, LP, Whitney Capital Series Fund LLC - Series LS1, Durban Capital LP, John Mills, P.A.W. Partners, LP, P.A.W. Small Cap Partners, LP, Prism Partners I, LP, Prism Partners III Leveraged, LP, Prism Partner IV Leveraged Offshore Fund, Arthur J. Samberg, Leonard Potter, Frederick Kraegel, Jeffrey Roseman, Mark Klein and Julian Geiger
Pricing date:	Oct. 10
Settlement date:	Oct. 11
Stock symbol:	OTCBB: CRMB
Stock price:	$2.30 at close Oct. 9
Market capitalization:	$13.83 million

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