BIB Holdings Secures Financing Totaling $11.2 Million; Company Strengthens Financial Position to Accelerate Strategic Growth Plan.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 24, 2004 BIB Holdings, Ltd. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : BIBO BIBO Bounded Input, Bounded Output BIBO Beer In, Beer Out BIBO Blood in - Blood Out (gangs) BiBo Bulk In, Bags Out (shipping) ) today announced that it has closed a $10,000,000 Standby Equity Distribution Agreement In Finance, SEDA stands for a Standby Equity Distribution Agreement. This is an agreement whereby a small publicly-traded company arranges to raise additional capital by selling new stock without making a formal Secondary Market Offering to the market. ("SEDA SEDA Staff and Educational Development Association SEDA Sustainable Energy Development Authority (Australia) SEDA Social and Economic Data Analysis SEDA Special Ed Assistant SEDA South East Drift Association ") and a $1,200,000 Convertible Secured Debenture with Cornell Capital Partners, a private equity investment fund. The Standby Equity Distribution Agreement is an innovative financing mechanism for publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. . The Standby Agreement Standby agreement In a rights issue, agreement that the underwriter will purchase any stock not purchased by investors. is an alternative to the traditional equity private placement or secondary offering. Under the structure, Cornell provides a firm commitment to purchase an agreed upon dollar amount of the Company's shares. The commitment would be available up to 2 years, renewable thereafter. The program is entirely controlled by the Company as opposed to the investor. The Standby Agreement provides the Company with the right but not the obligation to draw down on the facility. In contrast to a traditional secondary, the Company would be able to raise capital at various "snap shots" or mini-secondaries in the future, at prices the Company deems appropriate. This is a significant improvement in flexibility compared to a debt or convertible structure in which price conversion is controlled by the investor. Gail Binder, chief executive officer of BIB Holdings, said, "This financing provides immediate capital to repay all existing bank debt and for working capital needs. The SEDA enables us to fund our future development and deliver strong shareholder return. We are excited about our relationship with Cornell Capital and our ability to access, at our sole discretion, $10 million in equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. over the next two years." Brian Keane, senior vice president of Cornell Capital, said, "We are eager to assist BIB Holdings in meeting its ongoing financing needs and we look forward to a long-term relationship with the company." About BIB Holdings Ltd. BIB Holdings Ltd. designs, manufactures, imports, sells and markets branded and non-branded apparel. The company has a showroom in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , a distribution center in Pennsylvania and a distribution center in Las Vegas, within a Foreign Trade Zone. The company designs, sources and markets a brand of high quality apparel under the m.Sasson, Home Turf and New Terrain labels as well as private label. Product lines have included underwear, loungewear lounge·wear n. Clothing suitable for relaxing. Noun 1. loungewear - clothing suitable for relaxation article of clothing, clothing, habiliment, wearable, vesture, wear - a covering designed to be worn on a person's and outerwear, as well as accessories such as ties, hats, scarves, gloves, jewelry, backpacks and small leather goods as well as apparel. BIB Holdings Ltd. distributes its clothing via leading retailers throughout the United States and abroad. This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Those statements include statements regarding the intent, belief or current expectations of BIB Holdings Ltd., and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. |
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