Antigua Enterprises Inc. has entered into an agreement to sell to Ashley NA, LLC common and preferred shares representing a controlling interest in the company for $10.25 million. Under the agreement, Ashley NA will purchase 27,299,480 of the company’s common shares for $5,000,000, or $0.18315 per share, and 5,250,000 of the company’s Preferred Class A shares for $5,250,000, or $1.00 per share.
The company will use the proceeds to repay all of its outstanding debt that is past due and payable. Under the terms of the agreement, the entire purchase price will be placed into an escrow account pending shareholder and regulatory approval of the transaction.
Ashley NA is owned in common with the Sports Soccer and Lillywhites chains of sporting goods stores in the United Kingdom.
Upon closing of the transaction, Antigua will obtain from Donnay International S.A. a royalty-free non-exclusive license for the Donnay brand on apparel, headwear and bags in the United States, Canada and Puerto Rico.
“This agreement ends a long process of trying to find the right transaction for Antigua to resolve its balance sheet issues and return its focus to increasing profits. We are delighted to be associated with Sports Soccer’s ownership, because of their experience in growing a business from a small enterprise to a large one,” commented Benjamin Adams, the company’s chairman and chief executive officer.
The company’s President, Ronald McPherson, stated: “We believe this transaction not only gives us an ability to sell Antigua products in the United Kingdom but we are also excited to sell Donnay products in North America. The license with Donnay gives us the opportunity to sell products into new distribution channels.”
The company’s board of directors unanimously approved the transaction with Ashley NA and will recommend that the shareholders approve the transaction.
