The Wet Seal, Inc. Announces Intent to Conduct Rights Offering
FOOTHILL RANCH, Calif.--(BUSINESS WIRE)--The Wet Seal, Inc. (Nasdaq: WTSL), a leading specialty retailer to young women, today announced, subject to applicable regulatory approvals, that it intends to conduct a rights offering which will allow the Company to raise equity capital through the sale of shares of its Class A common stock to its stockholders. The Company currently anticipates that the size of the rights offering will be between $25 and $30 million.
In connection with the contemplated offering, the Company anticipates that it will distribute, at no charge, non-transferable subscription rights to its holders of common stock as of a record date which will be established in the future. The subscription rights will entitle the holders thereof to purchase common shares at a subscription ratio and at a cash subscription price which has yet to be determined. Additional terms of the rights will be announced at a later date.
The distribution of the rights and the commencement of the rights offering may occur only after a registration statement to be filed by the Company with the Securities and Exchange Commission (“SEC”) becomes effective. The Company anticipates that it will commence the rights offering in the third or fourth quarter of the current fiscal year.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities, nor shall there be any offer, solicitation or sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification of the securities under the securities laws of such state or jurisdiction.
About The Wet Seal, Inc.
The Wet Seal, Inc., a pioneer in fast fashion retailing, sells apparel, footwear and accessories designed for teen girls and young women through retail stores nationwide, as well as two e-commerce websites. The Company operates 531 stores in 47 states and Puerto Rico, www.wetseal.com and www.ardenb.com. For additional corporate information, please visit www.wetsealinc.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: This news release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements that relate to the Company's intent to conduct a rights offering and the anticipated terms thereof. Such forward-looking statements made by the Company involve risks and uncertainties and are subject to change based on factors beyond the Company's control. There can be no assurance that the rights offering will proceed as described in this release or that the terms of the rights offering will not vary from those contemplated in this release. The Company undertakes no obligation to publicly update or revise any forward-looking statements.