Evine Live Inc. (Nasdaq: EVLV) has secured fashion designer Tommy Hilfiger as an investor and adviser upon the execution of a definitive agreement to sell 10 million dollars of common stock at 1.68 dollars per share.
The shares were priced at a 10 percent discount to the previous 15 day average of the company’s stock, highlighted the video commerce marketplace in a communication issued Thursday.
Investors include among others, Tommy Hilfiger - Founder and Principal Designer of Tommy Hilfiger; the Chairman of the Board and Chief Executive Officer of G-III Apparel Group (Nasdaq: GIII), Morris Goldfarb, and Tommy Mottola, who was the Chairman and CEO of Sony Music Entertainment for 15 years.
Commenting his new involvement with the company, Tommy Hilfiger said: "Given what I see happening in today’s changing retail landscape, as well as the interactive video commerce world and social media explosion, I believe Evine has the competencies to become the bridge between bricks and mortar and ecommerce for today’s consumer. I look forward to bringing vision and relationships in the celebrity world to this team to help transform its growth path."
Bob Rosenblatt, CEO of Evine, highlighted how exciting is “to have these leading industry icons and executives invest in our company as we seek to build transformative alliances in this ever evolving video commerce marketplace. This investment will help us accelerate our brand building opportunities as well as strengthen our balance sheet. I couldn’t be more excited about working with Tommy Hilfiger again and with media/entertainment mogul Tommy Mottola.”
In connection with this investment, the Company also announced that Tommy Hilfiger and Tommy Mottola will become advisers to Evine.
The Investors will receive five-year warrants to purchase a number of shares of common stock equal to 50 percent of the number of shares originally purchased in this 10 million dollar investment. The exercise price of these warrants will be equal to 2.90 dollar per share, a 50 percent premium to the Company’s closing stock price one-day prior to this announcement of the offering.
In addition, the Investors will receive a six-month option to make an additional equity investment in Evine at a price equal to the Company’s five trading day average price prior to the exercise of the option. If this option is exercised, the Investors will also receive five-year warrants to purchase a number of shares of common stock equal to 50 percent of the number of shares purchased upon exercise of the option, and these warrants will also be priced at a 50 percent premium to the Company’s closing stock price one-day prior to the exercise of the option.
The total number of shares to be issued in this offering, including through the purchase of shares and exercise of the option and warrants, will not collectively exceed 19.99 percent.