Tarrant Apparel Group Enters Into Agreement to Consummate $10
Million Financing
LOS ANGELES, Dec. 13 /PRNewswire-FirstCall/ -- Tarrant Apparel Group
(NASDAQ:TAGS), a leading provider of private label and private brand casual
apparel, today announced its entry into a Securities Purchase Agreement on
December 6, 2004 to consummate a $10 million financing through the issuance of
6% Secured Convertible Debentures and warrants to purchase up to 1,250,000
shares of the Company's common stock to institutional investors. The financing
is expected to close during December, 2004, subject to customary closing
conditions including consent from the Company's senior secured lenders. T. R. Winston & Company acted as placement agent in the financing.
The Debentures will pay interest at a rate of 6% per annum and have a term of
three years. The investors may convert the Debentures into shares of the
Company's common stock at a price of $2.00 per share, which was a premium to
the closing price of the Company's common stock on the trading day immediately
preceding the date the parties entered into the Securities Purchase Agreement. At any time after 12 months from the closing date, the Company may force
conversion of 100% of the remaining principal amount of the Debentures into
common stock upon the satisfaction of certain conditions, including achieving a
minimum market price and trading volume for the Company's common stock. The
warrants will have a term of five years and an exercise price of $2.50 per
share.
The Company expects to use the net proceeds from the issue to finance the
development of private brands and to manage increased sales volume anticipated
for the coming year.
About Tarrant Apparel Group Tarrant Apparel Group serves specialty retailers, mass merchants, national
department stores, and branded wholesalers by designing, merchandising,
contracting for the manufacture of, and selling casual and well-priced apparel
for women, men, and children.
Except for historical information contained herein, the statements in this
release are forward-looking and made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are inherently unreliable and actual results may differ materially. Examples of forward looking statements in this news release include the
anticipated consummation of the financing transaction in December of 2004 and
the Company's intended use of the proceeds from the financing transaction. Factors which could cause actual results to differ materially from these
forward-looking statements include satisfaction of conditions to closing of the
financing transaction, including conditions that are outside of the parties'
control such as approval of the transaction by the Company's senior secured
lenders, and unexpected liabilities or obligations which become due. There can
be no assurance that these conditions will be satisfied, that the sale
transaction will be consummated or that the Company will use the proceeds from
the financing transaction as anticipated. The Company undertakes no obligation
to publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. DATASOURCE: Tarrant Apparel Group CONTACT: Corazon Reyes, Chief Financial Officer of Tarrant Apparel Group, +1-323-780-8250; or Investor Relations, Melissa Myron or Lila Sharifian, both for Tarrant Apparel Group, +1-212-850-5600
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