JAKKS Pacific Inc. reduces offering to 600,000 shares of common stock.MALIBU, Calif.--(BUSINESS WIRE)--April 25, 1997--JAKKS Pacific Inc. (NASDAQ/NMS:JAKK) Friday announced that it is reducing to 600,000 the number of shares of its common stock being offered by the company to the public through Cruttenden Roth Inc., the representative of the Underwriters. Also registered are 90,000 shares of the company's common stock to be sold by two of the company's stockholders to the underwriters in the event the overallotment option overallotment option See greenshoe. is exercised. On March 14, 1997, a preliminary prospectus Preliminary Prospectus A first draft registration statement filed by a firm prior to proceeding with an initial public offering of securities. The document, filed with the Securities & Exchange Commission, is intended to provide pertinent information to prospective shareholders was distributed in anticipation of the effectiveness of the offering based on the sale of 2 million shares of common stock by the company and 400,000 shares of common stock by certain stockholders of the company. In the preliminary prospectus, the company anticipated proceeds, after commissions and expenses, of approximately $14.2 million, of which approximately 43 percent ($6.1 million) was to be applied to the repayment of short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. , approximately 14 percent ($2.0 million) was to be used to acquire additional character and product licenses, approximately 35 percent ($5.0 million) was to be used to acquire product licenses and other toy businesses, and approximately 8 percent ($1.2 million) was to be added to working capital and general corporate purposes. As currently proposed, the company anticipates proceeds, after commissions and expenses, of approximately $2.9 million, of which approximately 35 percent ($1.0 million) will be applied to the repayment of short-term debt, approximately 17 percent ($500,000) will be used to acquire additional character and product licenses, approximately 35 percent ($1.0 million) will be used to acquire product lines and other toy businesses, and approximately 13 percent ($400,000) will be added to working capital and general corporate purposes. Jack Friedman, president of JAKKS, stated, "JAKKS believes that its cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , cash on hand and the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). from this offering will be sufficient to meet the company's working capital and capital expenditure requirements, as well as to provide JAKKS with adequate liquidity to meet its anticipated operating needs for the foreseeable future. "As noted in our registration statement, although operating activities are expected to provide cash, to the extent the company grows significantly in the future, its operating and investing activities may use cash, and, consequently, such growth may require JAKKS to obtain additional sources of financing." JAKKS Pacific JAKKS Pacific, Inc. NASDAQ: JAKK is is a multi-brand company that designs and markets a broad range of toys and consumer products and is based in Malibu, California. Its product categories include action figures, art activity kits, stationery, writing instruments, performance manufactures and distributes a line of toy products, including toy products based on the ``Power Rangers'' television series and feature films, action figures under a World Wrestling Federation license, the Road Champs CHAMPS Capitol Hill Association of Merchants and Professionals CHAMPS CHemometrics Applied to Metabonomics Proteomics and SAR CHAMPS Cleanliness-Hospitality-Accuracy-Maintenance-Product-Service CHAMPS Characteristics of Hardware Assemblies & Mission-build Planning System line of die-cast vehicles, a line of fashion dolls Fashion dolls are dolls designed to be dressed and redressed to reflect fashion trends or occasionally fantasy play. The dolls are typically plastic or vinyl, and are manufactured both as toys and as collectibles. They are enjoyed by many age groups. and accessories, and youth electronic toys. CONTACT: JAKKS Pacific, Malibu Joel Bennett, 310/456-7799 or Coffin Investor Relations Investor relations The process by which the corporation communicates with its investors. , Sherman Oaks, Calif. Bryan G. Crane, 818/789-0100 |
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