The Children’s Place Completes Rights Offering to its Shareholders

The Children’s Place, Inc. (NASDAQ: PLCE) recently completed a rights offering to its shareholders. The offering, which commenced on December 31, 2024, allowed holders of record of the company’s common stock as of December 13, 2024, to purchase non-transferable subscription rights. These rights enabled shareholders to buy up to 9,230,769 shares of Common Stock, with each subscription right consisting of a basic subscription right and an over-subscription privilege.

Shareholders who exercised their basic subscription rights were permitted to purchase 0.7220 shares of Common Stock per subscription right at $9.75 per share, with any fractional shares rounded down. Additionally, shareholders who fully exercised their basic rights were eligible to subscribe for additional shares through the over-subscription privilege at the same price, subject to pro rata allocations if demand exceeded the available shares.

The subscription period for the Rights Offering closed on January 31, 2025. The Company reported that the offering was oversubscribed, with a total demand for 12,117,812 shares of Common Stock. As a result, they are issuing 9,230,769 shares at the subscription price of $9.75 per share.

Major investors, Mithaq Capital SPC and Snowball Compounding Ltd., fully exercised their basic subscription rights. Mithaq additionally sought additional shares through the over-subscription privilege by adjusting downwards due to pro rata allocations. They paid a portion of the subscription price in cash and the remaining amount by delivering indebtedness.

The Company received approximately $29,812,994 in gross cash proceeds from the Rights Offering. These proceeds are intended to be used for general corporate purposes and to prepay outstanding amounts under the revolving credit facility.

Following the Rights Offering, the Company reported approximately 12,784,972 shares of Common Stock outstanding. This amount excludes shares issuable through the offering. Based on the issuance of new shares, Mithaq is expected to beneficially own around 62.2% of the Company’s Common Stock.

The Rights Offering was made in accordance with a registration statement filed with the SEC, and the company emphasized that this recent report should not be considered an offer to sell or a solicitation to buy any securities.

The Children’s Place remains focused on sustaining and enhancing growth, cash conversion, and reducing leverage following the completion of the Rights Offering. For more detailed financial information, interested parties can refer to the complete Form 8-K filing available on the SEC website.

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

Children’s Place Company Profile

The Children’s Place, Inc engages in the provision of apparel, footwear, accessories, and other items for children. The firm also designs contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Baby Place, and Gymboree. It operates through The Children’s Place U.S.