Evine Live (EVLV) Announces $10M Equity Raise (GIII)

September 15, 2016 6:23 AM EDT

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Evine Live Inc. (Nasdaq: EVLV) announced the execution of a definitive agreement to sell $10 million of common stock at $1.68 per share, which was priced at a 10 percent discount to the previous 15 day average of the Company’s stock, to investors (“Investors”) that include, among others, Mr. Tommy Hilfiger, Mr. Morris Goldfarb and Mr. Tommy Mottola. This initial investment is expected to close within a week.

In connection with this investment, the Company also announced that Tommy Hilfiger and Tommy Mottola will become advisors to Evine.

Bob Rosenblatt, CEO of Evine, said, "It is exciting to have these leading industry icons and executives invest in our company as we seek to build transformative alliances in this ever evolving video commerce marketplace. This investment will help us accelerate our brand building opportunities as well as strengthen our balance sheet. I couldn’t be more excited about working with Tommy Hilfiger again and with media/entertainment mogul Tommy Mottola.”

Mr. Hilfiger added, "Given what I see happening in today’s changing retail landscape, as well as the interactive video commerce world and social media explosion, I believe Evine has the competencies to become the bridge between bricks and mortar and ecommerce for today’s consumer. I look forward to bringing vision and relationships in the celebrity world to this team to help transform its growth path."

"There is no better way to bring a brand’s story and vision to life than live video commerce,” said Tommy Mottola. "We are thrilled to be investing in a company that has been doing exactly that. We view this as a strategic step into the changing retail landscape by igniting the fire where media and entertainment intersect retail."

The Investors will receive five-year warrants to purchase a number of shares of common stock equal to 50% of the number of shares originally purchased in this $10 million investment. The exercise price of these warrants will be equal to $2.90 per share, a 50% premium to the Company’s closing stock price one-day prior to this announcement of the offering.

In addition, the Investors will receive a six-month option to make an additional equity investment in Evine at a price equal to the Company’s five trading day average price prior to the exercise of the option. If this option is exercised, the Investors will also receive five-year warrants to purchase a number of shares of common stock equal to 50% of the number of shares purchased upon exercise of the option, and these warrants will also be priced at a 50% premium to the Company’s closing stock price one-day prior to the exercise of the option.

The total number of shares to be issued in this offering, including through the purchase of shares and exercise of the option and warrants, will not collectively exceed 19.99%.

The Company believes that important investments like this can help create strategic alliance opportunities for the Company to maximize shareholder value for all its stakeholders.

Tommy Hilfiger is the Founder and Principal Designer of Tommy Hilfiger, one of the world’s leading designer lifestyle brands. Morris Goldfarb is the Chairman of the Board and Chief Executive Officer of G-III Apparel Group (Nasdaq: GIII), a leading manufacturer and distributor of apparel and accessories under licensed brands, owned brands and private label brands. Tommy Mottola was the Chairman and CEO of Sony Music Entertainment for 15 years where he was credited with signing and developing such acts as Celine Dion, Mariah Carey, Beyoncé, Jennifer Lopez, Shakira, Bruce Springsteen and Billy Joel. Currently, he is the Chairman of the Mottola Media Group, partners with Dodger Theatricals, the world’s largest producer of Broadway shows, and a senior advisor to L. Catterton Partners.

Craig-Hallum Capital Group LLC is acting as exclusive placement agent and provided a fairness opinion to the Board of Directors of the Company.

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