SAN FRANCISCO, Aug. 22 /PRNewswire/ -- Good Guys (Nasdaq: GGUY), a leading
specialty retailer of consumer entertainment electronics, today announced the
completion of a private placement of $9.36 million of its common stock.
Participants in the offering include every member of Good Guys' board of
directors and key management personnel, including Chairman and
CEO Ronald A. Unkefer and newly appointed President Kenneth R. Weller.
The proceeds of the offering will be used to strengthen Good Guys' balance
sheet and enhance the availability of exclusive, limited distribution consumer
entertainment electronics products in advance of the holiday shopping season.
"Good Guys is poised to enter the holiday shopping season stronger and
healthier than we have been in years, and we want to ensure that we capitalize
on every opportunity to make November and December as profitable as possible,"
said Unkefer. "This infusion of cash will augment our balance sheet while
allowing us to quickly stockpile a unique selection of fully featured digital
and high-tech products that is above and beyond the generous allocation
already being offered by our major suppliers."
Investors purchased 2,017,647 restricted shares of the company's common
stock at $4.64 a share, the closing price of the company's common stock on the
Nasdaq National Market at the time of purchase. The investors also received
warrants exercisable for three years to purchase 1,008,822 additional common
shares at the same price.
"I firmly believe that Good Guys has the right strategy, right product mix
and right senior management to emerge as one of the most profitable and
well-respected consumer electronics retailers in the world," said Weller, who
recently rejoined Good Guys as president after seven years as senior vice
president of sales at Best Buy. "The confidence and commitment of the
officers and directors demonstrated by this investment underscore my
enthusiasm for returning to Good Guys to fortify the recent sales resurgence
and maximize growth opportunities."
With the completion of the offering, Good Guys has a total of
22,671,434 shares of common stock outstanding.
Good Guys is a leading specialty retailer of consumer entertainment
electronics, offering a distinctive selection of fully featured digital and
high-tech products from more than 100 of the world's most respected
manufacturers. Founded in 1973, Good Guys currently operates 79 stores in
California, Nevada, Oregon and Washington. For more information, visit
http://www.goodguys.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 successful implementation of 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 Good Guys
 back to top
Related links:
http://www.goodguys.com
Company News On-Call:
http://www.prnewswire.com/comp/108403.html or fax,
800-758-5804, ext. 108403
CONTACT:
Kristen Lark of Good Guys, 214-220-2484,
klark@goodguys.com
|
