WeSC has reached an agreement regarding the company's long-term debts and plans a rights issue
Stockholm, Sweden, February 23, 2018
WeSC AB (publ) (“WeSC”) has reached an agreement with the largest creditor regarding its long-term debts whereby the company acquires interest-bearing debts constituting slightly more than 80 percent of the subsidiary We International AB´s total debt. The subsidiary conducts distributing business and initiated a company reorganization at the end of 2017. The agreement gives WeSC the opportunity to further clear the balance sheet of the WeSC Group which opens for future prospects and the potential for all of the group companies. By the agreement the subsidiary expects to have a positive composition of approximately SEK 32.0 million or 75 percent of the total debts as part of a future public composition.
The Board intends to convene a general meeting shortly and propose the general meeting to resolve on a rights issue, which is a prerequisite for the above agreement. The largest shareholders, representing approximately 60 percent of outstanding shares and votes, have undertaken to vote for and subscribe for their pro rata share in the rights issue currently being prepared. More information on the rights issue and notice to the Extraordinary General Meeting will be published separately. The intention is that the WeSC Group will be free of interest-bearing liabilities after the reconstruction of the subsidiary We International AB has been completed and the rights issue has been completed.
WeSC will in connection to the reconstruction move the design and production departments to the office in New York, US. This is done in order for the company to better meet the needs of North American licensees and customers in the company's largest and most successful market. In addition, it is assessed that the move will make the design and production operations more efficient.
The licensing agreements of the 4 different product areas (Kids, Footwear, Underwear and Eyewear) are estimated to reduce the risks and costs of the company.
For further information, contact:
Business queries: Joseph Janus, CEO +46 8 46 50 50 00
Shareholder queries: Theodor Dalenson, Board chairman +46 8 46 50 50 00
The information is such that WeSC AB (publ) is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on February 23, 2018 CET 10,00.
Breifly about the company
WeSC designs, markets and sells clothing and accessories in the premium streetwear segment of the international market under the WeSC brand. WESC's shares are traded on Nasdaq First North and the company's Certified Adviser is Mangold Fondkommission AB, tel. +46 8 503 015 50.