New York, April 29 - Wet Seal, Inc. said it sold $24.6 million of series C convertible preferred stock and warrants to the investors that participated in ties January 2005 PIPE transaction and some other investors.
The series C convertibles convert at $3.00 per share while the warrants will be for 7.5 million shares at a price of $3.68.
As part of the agreement some of the investors will exercise all their series A warrants and some of the series B warrants that were issued in the January 2005 financing.
The investors that are lenders under the company's bridge facility have agreed to retire the principal and interest owing on the loan, a total of $12.0 million, in exchange for the convertibles.
The Foothill Ranch, Calif., clothing retailer will using the remaining proceeds of $18.0 million for general working capital purposes.
Exercise of the existing warrants will result in the issue of 3,359,997 shares for $6.41 million.
| Issuer: | Wet Seal, Inc.
|
| Issue: | Series C convertible preferred stock
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| Amount: | $24.6 million
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| Maturity: | Perpetual
|
| Shares: | 24,600
|
| Price: | $1,000
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| Conversion price: | $3.00
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| Warrants: | For 7.5 million shares
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| Warrant strike price: | $3.68
|
| Warrants expiry: | 5 years
|
| Announcement date: | April 29
|
| Settlement: | May 3
|
| Stock price: | $3.68 on April 28
|
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