American Apparel, Inc. Announces $10.0 Million At-the-Market Offering
May 11 2015 - 5:27PM
Business Wire
American Apparel, Inc. (the "Company") (NYSE MKT: APP), a
vertically-integrated manufacturer, distributor, and retailer of
branded fashion basic apparel, announced today that it has
commenced a $10.0 million “at-the-market” offering program.
Under the program, the Company may, from time to time and at its
discretion, offer and sell shares of its common stock having an
aggregate gross sales price of up to $10.0 million through Cowen
and Company, LLC, which will serve as sales agent. The Company
intends to use the net proceeds generated through the program for
working capital and general corporate purposes.
Sales of common stock under the program will be made directly on
the NYSE MKT, on any other existing trading market for the
Company’s common stock or to or through a market maker. In
addition, with the Company’s prior written approval, sales may be
made in negotiated transactions.
The common stock will be offered under the Company’s effective
shelf registration statement (including a prospectus) filed with
the Securities and Exchange Commission. A prospectus supplement
related to the offering has been filed with the Securities and
Exchange Commission. Any offer, solicitation or sale will be made
only by means of the prospectus supplement and the accompanying
prospectus. Current and potential investors should read the
prospectus forming part of the registration statement, and the
prospectus supplement relating to the program and other documents
the company has filed with the Securities and Exchange Commission
for more complete information about the Company and the
program.
A copy of the prospectus supplement and accompanying prospectus
relating to these securities may be obtained by contacting Cowen
and Company, LLC, c/o Broadridge Financial Services, 1155 Long
Island Avenue, Edgewood, NY 11717, Attention: Prospectus
Department, via telephone at 631-274-2806 or via facsimile at
631-254-7140.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy, nor may there be any sale of the
Company’s common stock in any state or jurisdiction in which such
an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities law of any state
or jurisdiction.
About American
Apparel
American Apparel, Inc. (the "Company," "we," "us," and
"our") is a vertically-integrated manufacturer, distributor, and
retailer of branded fashion basic apparel based in
downtown Los Angeles, California. As of March 31, 2015,
the Company had approximately 10,000 employees and operated 239
retail stores in 20 countries, including the United
States and Canada. The Company also operates a global
e-commerce site that serves over 50 countries worldwide. In
addition, the Company operates a leading wholesale business that
supplies high quality T-shirts and other casual wear to
distributors and screen printers.
This press release, and other statements that the Company may
make, may contain forward-looking statements. Forward-looking
statements are statements that are not historical facts and include
statements regarding, among other things, the Company's future
financial condition and liquidity including the impact of
compliance with, and availability under, our debt instruments,
results of operations, and future business plans and expectations,
including statements related to the possible sales of the Company’s
common stock in the at-the-market offering program and intended us
of proceeds from the sales, if any. Such forward-looking statements
are based upon the current beliefs and expectations of the
Company's management, but are subject to risks and uncertainties,
which could cause actual results and/or the timing of events to
differ materially from those set forth in the forward-looking
statements, including, among others: consequences of the
termination of Dov Charney, our former chief executive officer
(or the internal investigation related thereto), including any
litigation or regulatory investigations, any alleged actions of Mr.
Charney or any impact on our sales or brand related thereto;
changes in key personnel, our ability to hire and retain key
personnel, and our relationship with our employees; voting control
by our directors, lenders and other affiliates, including Standard
General Group and Dov Charney; ability to successfully
implement our strategic, operating, financial and personnel
initiatives; ability to maintain the value and image of our brand
and protect our intellectual property rights; general economic
conditions, geopolitical events, other regulatory changes, and
inflation or deflation; disruptions in the global financial
markets; the highly competitive and evolving nature of our industry
in the U.S. and internationally; risks associated with fluctuations
and trends of consumer apparel spending in the United States;
changes in consumer preferences or demand for our products; our
ability to attract customers to our retail and online stores; loss
or reduction in sales to wholesale or retail customers or financial
nonperformance by our wholesale customers; seasonality and
fluctuations in comparable store sales and wholesale net sales and
associated margins; ability to improve manufacturing efficiency at
our production facilities; changes in the price of materials and
labor, including increases in the price of raw materials in the
global market and minimum wages; ability to pass on the added cost
of raw materials and labor to customers; ability to effectively
manage inventory levels; risks that our suppliers or distributors
may not timely produce or deliver products; ability to renew leases
on economic terms; risks associated with our facilities being
concentrated in one geographic area; ability to identify new store
locations and the availability of store locations at appropriate
terms; ability to negotiate new store leases effectively; and
ability to open new stores and expand internationally; ability to
generate or obtain from external sources sufficient liquidity for
operations and debt service; consequences of our significant
indebtedness, including our relationship with lenders, ability to
comply with debt agreements, ability to generate cash flow to
service our debt, and the risk of acceleration of borrowings
thereunder as a result of noncompliance; adverse changes in our
credit ratings and any related impact on financial costs and
structure; continued compliance with U.S. and foreign government
regulations and legislation, including environmental, immigration,
labor, and occupational health and safety laws and regulations;
loss of U.S. import protections or changes in duties, tariffs and
quotas, risks associated with our foreign operations and supply
sources such as market disruption, changes in import and export
laws, and currency restrictions and exchange rate fluctuations;
litigation and other inquiries and investigations, including the
risks that we, our officers or directors in cases where
indemnification applies, will not be successful in defending any
proceedings, lawsuits, disputes, claims or audits, and that
exposure could exceed expectations or insurance coverage; tax
assessments by domestic or foreign governmental authorities,
including import or export duties on our products and the
applicable rates for any such taxes or duties; ability to maintain
compliance with the exchange rules of the NYSE MKT LLC; the
adoption of new accounting standards or changes in interpretations
of accounting principles; adverse weather conditions or natural
disaster, including those which may be related to climate change;
technological changes in manufacturing, wholesaling, or retailing;
the risk, including costs and timely delivery issues associated
therewith, that information technology systems changes may disrupt
our supply chain or operations and could impact cash flow and
liquidity, and ability to upgrade information technology
infrastructure and other risks associated with the systems that
operate our online retail operations; the risk of failure to
protect the integrity and security of our information systems and
customers' information; and other risks detailed in the Company's
filings with the Securities and Exchange Commission, including
the Company's Annual Report on Form 10-K for the year ended
December 31, 2014, as amended. The Company's filings with
the SEC are available at www.sec.gov. You are urged
to consider these factors carefully in evaluating the
forward-looking statements herein and are cautioned not to place
undue reliance on such forward-looking statements, which are
qualified in their entirety by this cautionary statement. The
forward-looking statements speak only as of the date on which they
are made and the Company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events
or circumstances.
ICRJohn Rouleau(203) 682-8200John.Rouleau@ICRinc.comorMedia
Contact:ICRAlecia Pulman(203) 682-8200Alecia.Pulman@ICRinc.com