USA: Ridgeview Announces Change in Transaction With Gibor
Ridgeview, Inc. announced that Gibor Sport Alpha Socks Ltd. has determined not to pursue a proposal to acquire all of Ridgeview's outstanding common stock for $1.00 per share, but has indicated it is still interested in obtaining a controlling interest in the Company. Gibor is now considering doing so through a direct equity investment rather than the acquisition of any outstanding common stock of Ridgeview. No specific plans or proposals have been made as to the number or type of shares that may be purchased in a direct equity investment by Gibor or the price to be paid for such investment. Ridgeview has provided business and financial information to Gibor, and Ridgeview and Gibor are actively discussing the possibility of such a direct equity investment. If the parties reach an agreement on terms, Ridgeview will seek to close on the transaction as soon as possible thereafter.When Gibor and Ridgeview signed a letter of intent in April regarding a proposed acquisition of all of Ridgeview's outstanding common stock, Gibor and the Company also agreed that Gibor would make an unsecured, subordinated loan in the amount of $1,000,000 to the Company to provide the Company with additional working capital. Gibor and the Company further agreed that if the acquisition did not close within 90 days from the date the loan was made, Gibor would have the right to convert the amount of its loan into 1,500,000 shares of Ridgeview's Common Stock. Gibor made this subordinated loan to Ridgeview on April 24, 2000. On May 25, 2000, Gibor filed a statement on Schedule 13D with the United States Securities and Exchange Commission indicating that it may be deemed to be the beneficial owner of 1,500,000 shares of Ridgeview's common stock, which upon conversion would represent approximately 33.3% of Ridgeview's then outstanding common stock.
May 29, 2000