SAN FRANCISCO, Aug. 20 /PRNewswire/ -- The Good Guys! (Nasdaq: GGUY), a
leading specialty retailer of consumer entertainment electronics, today
announced the completion of a private placement of $16.25 million, or
3.25 million shares, of its common stock.
The proceeds of the offering will be used to support the enhancement of
the company's inventory to reflect a focus on digital and high-tech consumer
entertainment electronics, in advance of the holiday season. In addition,
proceeds will facilitate the previously announced restructuring, which
includes the elimination of computers and home office products from The Good
Guys! product line. '
"This is a critical milestone in our overall strategy to return The Good
Guys! to profitability," said Ronald A. Unkefer, founder, chairman and CEO,
The Good Guys!. "This infusion of cash gives us greater flexibility to adjust
our product mix and will help us achieve our short-term goals faster and more
efficiently."
Under the terms of the private placement agreement, investors purchased
3.25 million restricted shares of the company's common stock at $5 a share and
received warrants exercisable for three years to purchase 1.625 million
additional common shares at a price of $6.125 a share. Net proceeds to the
company from the offering will be approximately $15,350,000.
The private placement, primarily to institutional investors, was led by
the investment firm of Morgan Keegan & Company. With the completion of the
offering, The Good Guys! has a total of 19,597,333 shares of common stock
outstanding.
The Good Guys! also reported that it is negotiating a bank credit facility
to provide an expanded borrowing capacity. The three-year facility would
increase the company's line of credit to $100 million.
The Good Guys! is a leading specialty retailer of consumer entertainment
electronics, operating a total of 79 stores in California, Washington, Oregon
and Nevada, and marketing a broad range of high quality, name brand products
and related services. For more information on The Good Guys!, including news
releases, product information and store locations, visit http://www.thegoodguys.com.
To the extent this news release contains forward-looking statements, such
statements are subject to risks and uncertainties, including, but not limited
to, the Company's current restructuring program, increases in promotional
activities of competitors, changes in consumer buying attitudes, the presence
or absence of new products or product features in the Company's merchandise
categories, changes in vendor support for advertising and promotional
programs, changes in the Company's merchandise sales mix and economic
conditions.
SOURCE The Good Guys!
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Related links:
http://www.thegoodguys.com
Company News On-Call:
http://www.prnewswire.com/comp/108403.html or fax,
800-758-5804, ext. 108403
CONTACT:
Kristen Malacarne of The Good Guys!,
214-665-1335, or pager, 888-613-2159
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