Perfect Moment Ltd., the performance luxury skiwear and lifestyle brand, has closed on a private placement financing of approximately $6.4 million of its newly created 12 percent Series AA Convertible Preferred Stock. The 1,723,989 shares of Series AA Convertible Preferred Stock are convertible into shares of common stock at a fixed price of $1.1601 per common share.
Participants in the offering include Max Gottschalk, co-founder and chairman of Perfect Moment, who invested $2.0 million. Other investors include institutional investors Kahala19, LLC, who invested a further $2.0 million in the new offering. Kahala also converted its previously issued $2.0 million convertible promissory note into common stock at its original $1.00 per share conversion price. As a result of the conversion, Perfect Moment has eliminated all convertible debt outstanding.
The company has reported in a media release that it “intends to use the net proceeds to support strategic growth initiatives, working capital and general corporate purposes.”
ThinkEquity LLC acted as the private placement agent. Manatt, Phelps & Phillips, LLP represented the company and Sichenzia Ross Ference Carmel LLP represented the placement agent.
Strategic and Operational Momentum
The investment follows the recent appointment of a new executive leadership team of seasoned operators from Canada Goose who have launched a comprehensive transformation program focused on operational efficiency, sustainable growth and brand elevation. Key initiatives include structural cost reductions across the supply chain and corporate functions, enhanced gross margin discipline through improved sourcing and pricing strategies, and a more agile inventory and channel management.
At the same time, the company has doubled down on its brand-building agenda, aligning creative and commercial functions — expanding its “product architecture, accelerating global omnichannel reach and deepening engagement with its customer base.”
“This is a defining moment for the brand,” said Perfect Moment’s President and Chief Creative Officer, Jane Gottschalk. “We’ve always had a clear vision — to create technically beautiful pieces that merge performance with fashion and speak to a lifestyle that’s bold, active and expressive. Now, with the right leadership team and infrastructure in place, we believe we finally have the platform to scale that vision globally. It’s incredibly energizing to see the business and brand aligning with such momentum.”
Key Terms of the Offering
Each Series AA Preferred Stock share is convertible into five shares of the company’s common stock at the investor’s option, at an initial conversion price of $1.1601 per share, subject to customary adjustments. Beginning six months after the closing date, the company could require conversion of the Preferred Stock if its common stock trades above 200 percent of the then conversion price, with average daily volume exceeding 200,000 shares for 20 out of 30 consecutive trading days, subject to certain conditions.
The Series AA Preferred Stock will pay cumulative cash dividends on each share of Series AA Preferred Stock at an annual rate of 12.00 percent and is not redeemable. The Series AA Preferred Stock is non-voting, except as applicable law requires.
The company has agreed to file a resale registration statement with the U.S. Securities and Exchange Commission covering the resale of the shares of common stock underlying the Series AA Preferred Stock.
Image courtesy Perfect Moment
