The previous owners of Kessler Team Sports have decided to forego a guarantee granted by new owner collegiate Pacific, instead deciding to retain the majority of the Collegiate Pacific shares issued and to release Collegiate Pacific from the guarantee.
The Dickman family, who sold the team retailer in April for $13.75 million, had been guaranteed $7.25M upon sale of the approximately 908,000 shares issued in the sale. They picked up $6.5 million in cash at close.
The guarantee was reflected as a liability referred to as 'redeemable common stock' on our June 30, 2004 balance sheet. BOO will now re-class the $7.25 million as an increase in stockholders' equity to approximately $39.5 million versus $6.0 million on June 30, 2003.
