USA: Innovo Group Granted Temporary Extension For Continued Listing
While Innovo failed to meet this requirement as of November 30, 1999, the company was granted a temporary exception from this standard subject to Innovo meeting certain conditions. The conditions require the company to obtain a minimum net tangible asset level of $4 million prior to August 11, 2000 and a minimum net tangible asset level of $5 million on or before October 31, 2000.
The company plans to meet the Phase I, $4 million net tangible asset level requirement through the issuance of $1.5 million of common stock for goods and services to Commerce Investment Group of California and through the issuance of $1.5 million of common stock to the Furrow Group, a group led by the company's chairman and CEO. The Furrow Group will be assuming $1 million of outstanding company debt owed to third parties and forgiving $500,000 of company debt currently owed to the Furrow Group. The stock to be issued under Phase I will be priced at $1.10 per share and each share will be accompanied by an equal amount of warrants priced at $2.10 per share. The issuance of the warrants will be subject to shareholder approval as part of the shareholder vote on the Phase II transactions described below.
The company plans to meet the $5 million Phase II requirements prior to October 31, 2000 through the issuance of an additional $1.5 million of company common stock valued at $1 per share to the Commerce Investment Group for additional goods and services and through the issuance of additional shares to outside investors. The Phase II shares issued to Commerce will be accompanied by an equal amount of warrants priced at $2.10 per share and the shares issued to the outside investors will also have a warrant attached. The shares and warrants to be issued under Phase II will be subject to shareholder approval.
The chairman and CEO and other Board members will agree to vote their currently owned shares (approximately 2.4 million shares) in favor of the Phase II transactions, including the issuance of all the warrants. Neither the Phase I and Phase II transactions are the subject of binding agreements and, therefore, the closing of the transactions is dependent, among other things, on the ability of the Company to negotiate definitive binding agreements satisfactory to the parties.
The exception will expire on October 31, 2000. In the event the Company is deemed to have met the terms of the exception, it shall continue to be listed on The Nasdaq SmallCap Market. The company believes that it can meet these conditions, however, there can be no assurance that it will do so. If at some future date the company's securities should cease to be listed on The Nasdaq SmallCap Market, they may continue to be listed on the OTC-Bulletin Board. For the duration of the exception, the company's Nasdaq symbol will be INNOC.
About Innovo Group Inc
Innovo Group Inc designs, markets, manufactures and distributes fashion and sports licensed nylon and canvas products for the premium and advertising specialty market and retail sector in the United States and Europe. Under licensing agreements, the company's sports lines feature the designs of the NBA, NFL, NHL, Major League Baseball and numerous collegiate teams as well as Garfield, Walt Disney and Warner Brothers. Innovo also has certain exclusive and non-exclusive manufacturing and distribution rights for NASCAR licensed products. For more information, visit the company web site at www.innovogroup.com.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this news release that may be considered forward-looking statements could be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected. These include uncertainties in the market, competition, legal and other risks detailed from time to time in the Company's SEC reports. Risks also include the ability of the Company to enter into binding agreements with Commerce and the outside investor with respect to the Phase I and Phase II transactions described above and to close such transactions in the dates set forth above. The Company assumes no obligation to update information in this release..
Companies: Joe’s Jeans Inc
The global dynamics of the sportswear sector look sure to be shaken up following Adidas's EUR3.1bn (US$3.8bn) purchase of Reebok. Joe Ayling and Rebecca Danton ask whether this new clout will really b...
The latest trends in sports footwear and clothing are not just based on high technology - as Penny Leese found out at ISPO, the international trade fair for sports equipment and fashion....
The popularity of licensing trademarks for business purposes seems to be at an all-time high, particularly in the fashion field where consumers are buying more licensed products and brand names now th...
Apparel group Innovo said it has signed a deal with apparel distributor Pixior to outsource its product fulfilment services....
California-based Innovo Group is contemplating strategic acquisitions, mergers or a sale of the company in a bid to enhance shareholder value, it has announced....
Surf goods maker Ocean Pacific (Op) is producing a range of National Basketball Association (NBA) beachwear in what is the business's first co-branded strategic relationship....
Sports brand Jordan, a division of the Nike group, is preparing to launch its new trainer line - Air Jordan XXI - which it claims is "a look toward the future"....
Apparel marketer Innovo posted disappointing yet expected fourth quarter results as net sales plummeted 35% from US$30m in the 2004 fourth quarter to $19.7m this year. ...
- Why do modern robotics elude sportswear makers?
- Mexico makers bullish on Trump's proposed tariffs
- Traditional financing is a misfit for fast fashion
- How would end of NAFTA affect US apparel industry?
- Bagir CEO says suit-maker is back on track
- US Q3 in brief - G-III Apparel, Express
- Bagir exports first trousers for H&M from Ethiopia
- Fruit of the Loom CEO Medlin dies suddenly
- Throwaway fast fashion model needs re-think
- Crystal expands empowerment project to male staff
- Outdoor performance apparel 2016: A broader perspective
- Global market review of lingerie – forecasts to 2022
- Global apparel markets: product developments and innovations, October 2016
- Footwear Top 5 Emerging Markets Industry Guide_2016
- REPORT BUNDLE: Africa-Med, Southeast Asia and Central America strategic sourcing pack