The Children’s Place Launches Rights Offering to Purchase $90 Million in Common Stock

The Children’s Place, Inc. announced on December 31, 2024, the commencement of a rights offering aimed at acquiring up to $90 million worth of shares of the company’s common stock. This offering represents 9,230,769 shares of the common stock in total.

The Rights Offering, as detailed, involves the distribution of non-transferable subscription rights on a pro rata basis to stockholders as of December 13, 2024, the record date. Each stockholder will receive one non-transferable subscription right for every full share of common stock owned by them as of the record date.

The basic subscription rights provide the option for rights holders to purchase 0.7220 shares of common stock per subscription right. Moreover, subscribers who fully exercise their basic subscription rights will also have the opportunity to exercise an over-subscription privilege to acquire additional shares of common stock at a subscription price of $9.75 per whole share.

Fractional shares resulting from the exercise of subscription rights will be rounded down to the nearest whole share, and excess subscription payments will be returned in the manner they were made. The subscription period for the Rights Offering will cease at 5:00 p.m., New York City time, on January 31, 2025, unless extended at the discretion of the company.

It is important to note that the subscription rights are non-transferable, except by operation of law, and will not be listed for trading on Nasdaq or any other stock exchange. The company does not recommend whether stockholders should exercise their rights, leaving it to stockholders to make their decisions based on their evaluation of their best interests and the company’s financial position.

The proceeds from the Rights Offering, net of expenses and as required by the Amended and Restated Credit Agreement, are expected to prepay the outstanding indebtedness under the Credit Agreement. Subsequently, the funds raised will be utilized for general operating, working capital, and corporate purposes.

This Rights Offering is sanctioned by the company’s registration statement on Form S-1, effective as of December 31, 2024, filed with the United States Securities and Exchange Commission (SEC). For further information or copies of relevant documents, stockholders may contact the information agent for the Rights Offering, D.F. King & Co., Inc., at (888) 567-1626 or visit the SEC’s website at www.sec.gov.

The Children’s Place, Inc., known as an omni-channel children’s specialty brand, operates with a global network of retail and wholesale channels. With a strong presence in North America and distribution in 15 countries through international franchise partners, the company focuses on designing, manufacturing, and retailing high-quality children’s apparel, accessories, and footwear at value prices under various brands.

This press release contains forward-looking statements that are based on the company’s current expectations and assumptions, subject to several risks and uncertainties as detailed in their filings with the Securities and Exchange Commission.

Investor Relations can be reached at (201) 558-2400 ext. 14500 for further inquiries.

The Finance Department of The Children’s Place, Inc.

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.

About Children’s Place

The Children's Place, Inc operates as a children's specialty apparel retailer in North America. It operates through two segments, The Children's Place U.S. and The Children's Place International. The company offers apparel, footwear, accessories, and other items for children and tweens; and designs, contracts to manufacture, and sells merchandise under the proprietary The Children's Place, Place, Baby Place, Gymboree, Sugar & Jade, and PJ Place brand names.