FACTORY 2-U STORES, INC. Announces Completion of Equity Financing.Business Editors SAN DIEGO--(BUSINESS WIRE)--March 7, 2003 FACTORY 2-U Factory 2-U is a chain of department stores that are located mostly in the Western United States selling clothing, domestics, and merchandise, founded in 1962, originally private owned. They have 6000 employees with more than 10 stores. STORES, INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (Nasdaq:FTUS FTUS Full-Time Unit Support ) today announced it has completed the previously announced placement of 2,532,679 shares of its common stock for an aggregate amount of $5,928,293 before placement fees. The placement agent also received a three-year warrant to purchase 75,000 shares of common stock at an exercise price of $3.50 per share. Bill Fields, President and Chief Executive Officer, commented, "The completion of this transaction is the first in a series of planned capital raising efforts for the purpose of improving the Company's financial position. We are working on the proposal from a financial institution for junior secured debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay of up to $7.5 million. The financing that we hope to complete by March 31, 2003, would be secured by inventory and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. . In addition, we anticipate raising another $3.0 million to $4.0 million through a sale-leaseback transaction later this year. The successful completion of these transactions and the expected receipt of an $8.2 million tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. should provide the necessary liquidity to execute our turnaround initiatives this fiscal year." FACTORY 2-U STORES, INC. operates 244 "Factory 2-U" off-price retail stores which sell branded casual apparel for the family, as well as selected domestics and household merchandise at prices which generally are significantly lower than the prices offered by its discount competitors. The Company operates 32 stores in Arizona, 3 stores in Arkansas, 64 stores in southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, , 63 stores in northern California, 1 store in Idaho, 8 stores in Nevada, 9 stores in New Mexico, 1 store in Oklahoma, 15 stores in Oregon, 34 stores in Texas, and 14 stores in Washington. Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, and actual results could differ materially from the Company's present expectations. Among the important factors that could cause actual results to differ materially from those indicated in the forward-looking statements are: customer demand and trends in the off-price apparel industry, the effect of economic conditions, the impact of competitive openings and pricing, supply constraints or difficulties, and other risks detailed in the Company's Securities and Exchange Commission filings. |
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