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Pacific Sunwear of California Inc. Message Board

  • smaycs3 smaycs3 Aug 25, 2011 10:11 PM Flag

    Gave away 900,000 free shares


    Apparently in exchange for rent consessions.

    Bothersome when mgmt owns little to no stock and gives it away freely.

    But, at the same time, lower rent in exchange for some upside if PSUN survives & thrives is not totally unreasonable from a landlords perspective.
    On August 19, 2011, the Company reached an agreement with a landlord to amend approximately 80 existing store leases. As partial consideration for the agreement to enter into the lease amendments, the Company entered into a Stock Purchase Agreement (the "Agreement"). Pursuant to the Agreement, upon the execution of the lease amendments and satisfaction of other customary closing conditions, the Company will issue to the landlord an aggregate of 900,000 shares of common stock of the Company, par value $0.01 (the "Purchased Shares"). The closing of the issuance and sale of the Purchased Shares is expected to take place in September 2011. The issuance and sale of the Purchased Shares are exempt from registration under Section 4(2) of the Securities Act of 1933, as amended and Regulation D promulgated thereunder, as such issuance and sale does not involve a public offering.


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