US: Innovo shareholders OK Joe's Jeans merger
Shareholders in Innovo Group Inc have voted in favour of its proposed merger with JD Holdings, owner of the Joe's and Joe's Jeans trademarks.
At the company's annual stockholder meeting on 11 October (Thursday), it was also agreed that Joe Dahan, sole shareholder of JD Holdings Inc and founder of the brand, would receive 14m shares of Innovo common stock.
The company also plans to change its name from Innovo Group Inc to Joe's Jeans Inc.
Innovo is currently the licensee for men's and women's denim and denim-related sportswear. When the merger is consummated, the existing licensing agreement will be terminated and Innovo will become the trademark owner.
Marc Crossman, chief executive officer and director, said the measures "represent a significant transformation of our company going forward as we continue our initiative to expand Joe's into a full lifestyle brand."
From today (15 October) the company's new ticker symbol on the Nasdaq stock market will be JOEZ.
The merger is expected to close in the next few days.
When the deal was first announced, the company said it would "cap our strategic overhaul by transforming us from a lower margin private label manufacturer and brand licensee into a lifestyle brand owner and manager with denim expertise focused on developing premium denim products under the Joe's and Joe's Jeans brands."
It plans to put the JD logo onto handbags and small leather good products, as well as other categories.
Joe's Jeans has posted full-year profitability of $2.3m in net income compared to a loss of $9.3m in the prior year, thanks to better margins owing to a production shift....
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