Iconix Brand Group, Inc. has entered into a definitive agreement with Cherokee Inc. to buy out the Mossimo finders agreement for $33 million in cash payable upon Iconix closing on its previously announced agreement to acquire Mossimo Inc. As part of the agreement Cherokee Inc. will withdraw its offer to purchase Mossimo Inc.
The Mossimo Finders Agreement provides for Cherokee Inc. to receive 15% of all earned royalties received from Mossimo's license with Target Stores in perpetuity in exchange for finding and brokering the license agreement.
