Sequential Brands Group Inc. filed paper work to issue up to 14.3 million shares of common stock plus warrants to pay for its Aug. 15 purchase of AND1, Avia, Linens ‘n Things and Nevados from Galaxy Brands Holdings as well as another recent acquisition.
The companys S3 registers 13.75 million shares of common stock worth $13.40 a share, or $182.4 million, and 3.0 million warrants valued at $40.2 million it will issue to Galaxy Brands Holdings shareholders in conjunction with its Aug. 15 acquisition agreement with the company.
In that agreement, Sequential agreed to pay Galaxy Brands shareholders $100 million in cash, subject to certain adjustments; 13,750,000 shares of common stock, subject to rounding; and warrants to purchase up to an additional 3.0 million shares of common stock, subject to adjustment for stock splits, stock dividends or similar transactions. The agreement calls for Galaxy to hold back approximately 1,375,000 holdback shares until February 15, 2016.
Sequential Brands S3 also registers 581,341 common shares of its stock it agreed to issue to shareholders of William Rast Licensing LLC and William Rast Sourcing LLC in conjunction with Sequential Brands May 5, 2014 acquisition of the remaining 18 percent of those companies Sequential Brands did not already own.