iMedia Announces $4 Million Equity Financing
April 15 2020 - 5:58AM
iMedia Brands, Inc. (NASDAQ: IMBI) today announced that it entered
into a financing agreement to sell $4 million of common stock
priced at market to investors that include, among others, Invicta
Media Investments, an affiliate of Eyal Lalo, the Company’s Vice
Chair, as well as current director Michael Friedman. Proceeds will
be used for general working capital purposes. The initial closing
of $1.5 million is expected to occur on April 17, 2020, with
subsequent closings to follow.
The shares were priced at $2.0425 per share, and
include 50% warrant coverage with a strike price of $2.66 per share
(a 30% premium to the purchase price).
Tim Peterman, iMedia’s CEO, said, “This
financing led by Invicta underscores their confidence in our
turnaround progress and support for our longer-term growth plan. I
cannot say enough about Eyal Lalo’s contributions to our
efforts.”
In addition to the financing, Tim Peterman was
appointed to serve on iMedia’s board of directors. Commenting on
the appointment, iMedia Chairman Landel Hobbs said: “Tim has shown
his dedication to this company for many years, including his
current role of orchestrating a turnaround that we expect will
result in a well-diversified, profitable media organization. Given
his efforts and expertise, we felt his addition to our board
represents our shareholders well.”
About iMedia Brands, Inc.
iMedia Brands, Inc. (Nasdaq: IMBI) is a leading
interactive media company that manages a growing portfolio of niche
lifestyle television networks, niche advertisers and complimentary
media services in North America. Its brand portfolio spans multiple
business models and product categories and includes ShopHQ, Bulldog
Shopping Network, Float Left Interactive, J.W. Hulme and iMedia 3PL
Services. Please visit www.imediabrands.com for more investor
information.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995
This document may contain certain
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Any statements contained
herein that are not statements of historical fact, including
statements regarding financing, use of proceeds, the turnaround of
our business and financial performance, the future diversification
of our business and future profitability, are forward-looking. The
Company often use words such as anticipates, believes, estimates,
expects, intends, seeks, predicts, hopes, should, plans, will and
similar expressions to identify forward-looking statements. These
statements are based on management's current expectations and
accordingly are subject to uncertainty and changes in
circumstances. Actual results may vary materially from the
expectations contained herein due to various important factors,
including (but not limited to): variability in consumer
preferences, shopping behaviors, spending and debt levels; the
general economic and credit environment; interest rates; seasonal
variations in consumer purchasing activities; the ability to
achieve the most effective product category mixes to maximize sales
and margin objectives; competitive pressures on sales and sales
promotions; pricing and gross sales margins; the level of cable and
satellite distribution for the Company’s programming and the
associated fees or estimated cost savings from contract
renegotiations; the Company’s ability to establish and maintain
acceptable commercial terms with third-party vendors and other
third parties with whom the Company has contractual relationships,
and to successfully manage key vendor and shipping relationships
and develop key partnerships and proprietary and exclusive brands;
the ability to manage operating expenses successfully and the
Company’s working capital levels; the ability to remain compliant
with the Company’s credit facilities covenants; customer acceptance
of the Company’s branding strategy and its repositioning as a video
commerce company; the ability to respond to changes in consumer
shopping patterns and preferences, and changes in technology and
consumer viewing patterns; changes to the Company’s management and
information systems infrastructure; challenges to the Company’s
data and information security; changes in governmental or
regulatory requirements; including without limitation, regulations
of the Federal Communications Commission and Federal Trade
Commission, and adverse outcomes from regulatory proceedings;
litigation or governmental proceedings affecting the Company’s
operations; significant events (including disasters, weather events
or events attracting significant television coverage) that either
cause an interruption of television coverage or that divert
viewership from its programming; disruptions in the Company’s
distribution of its network broadcast to customers; the Company’s
ability to protect its intellectual property rights; our ability to
obtain and retain key executives and employees; the Company’s
ability to attract new customers and retain existing customers;
changes in shipping costs; expenses related to the actions of
activist or hostile shareholders; the Company’s ability to offer
new or innovative products and customer acceptance of the same;
changes in customer viewing habits of television programming; and
the risks identified under Item 1A(Risk Factors) in the Company’s
most recently filed Form 10-K and any additional risk factors
identified in its periodic reports since the date of such Form
10-K. More detailed information about those factors is set forth in
the Company’s filings with the Securities and Exchange Commission,
including its annual report on Form 10-K, quarterly reports on Form
10-Q, and current reports on Form 8-K. Investors are cautioned not
to place undue reliance on forward-looking statements, which speak
only as of the date of this announcement. the Company’s is under no
obligation (and expressly disclaim any such obligation) to update
or alter its forward-looking statements whether as a result of new
information, future events or otherwise.
Contacts:
Investors:Gateway Investor
RelationsCody SlachIMBI@gatewayir.com(949) 574-3860
Media:press@imediabrands.com(800) 938-9707
iMedia Brands (NASDAQ:IMBI)
Historical Stock Chart
From Mar 2024 to Apr 2024
iMedia Brands (NASDAQ:IMBI)
Historical Stock Chart
From Apr 2023 to Apr 2024