Kidpik Corp. Announces Conversion of Convertible Debentures into Common Stock

Kidpik Corp. (NASDAQ: PIK) recently disclosed in an 8-K filing that the investor, EF Hutton YA Fund, LP, has converted a portion of the Initial Debenture into common stock of the company. This conversion represents a significant milestone for the company following the Securities Purchase Agreement entered into earlier this year.

On December 4, 2024, the Investor converted $100,000 of the principal amount of the Initial Debenture into 49,721 shares of common stock at a conversion price of $2.0112 per share. Subsequently, on December 20, 2024, a further $100,000 of the principal amount of the Initial Debenture was converted into 55,518 shares of common stock at a conversion price of $1.8012 per share.

Kidpik Corp. has claimed an exemption from registration under Section 3(a)(9) of the Securities Act of 1933 for these issuances of common stock upon the conversion of the Initial Debenture, as they were exchanged with an existing security holder without the payment of commissions.

The transaction marks a strategic move for Kidpik Corp. as it navigates its financial landscape and capital structure. The company’s willingness to convert convertible debentures into common stock signals confidence in its growth trajectory and faith in the investor relations, aligning its interests more effectively with equity stakeholders.

As an emerging growth company defined under Rule 405 of the Securities Act of 1933, Kidpik Corp. is streamlining its financial processes and demonstrating a commitment to its shareholder base. The company’s Chief Executive Officer, Ezra Dabah, signed off on the 8-K filing, reflecting the company’s compliance with regulatory obligations.

This move signifies a proactive step for Kidpik Corp. in managing its financial instruments effectively and optimizing its capital structure in line with market conditions and shareholder expectations. The conversion of the Initial Debenture into common stock demonstrates a strategic shift in the company’s financing approach, potentially enhancing its equity position and fostering investor confidence in its long-term growth prospects.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Kidpik’s 8K filing here.

Kidpik Company Profile

Kidpik Corp. operates as a subscription-based e-commerce company that sells kids apparel, footwear, and accessories. It offers apparel, including tops, bottoms, cardigans, jackets, dresses, and swimwear in knit and woven fabrications; shoes, such as sneakers, boots, sandals, and dress shoes; and accessories comprising sunglasses, jewelry, bags, socks, hats, hair goods, and other items.