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Business Wire 18-Sep-2023 4:15 PM
Kidpik Corp. ("KIDPIK" or the "Company"), an online clothing subscription-based e-commerce company, is pleased to announce that it has entered into a debt exchange agreement with Ezra Dabah, its Chief Executive Officer, Chairman and largest stockholder. Pursuant to the debt exchange agreement, Mr. Dabah agreed to exchange $1.2 million of outstanding promissory notes, which were due on demand, for 1,553,800 shares of restricted common stock of the Company, based on a conversion price of $0.7723 per share, which was 29.8% above the closing sales price of the Company's common stock on the Nasdaq Capital Market on September 15, 2023, the date that the agreement was entered into.
The 1,553,800 shares of restricted common stock represent approximately 19.9% of the Company's outstanding common stock prior to the conversion, and increased Mr. Dabah's beneficial ownership of our outstanding shares of common stock from 61.7% to 68.1%.
The debt conversion was undertaken in an effort to reduce the Company's outstanding debt and for the Company to increase its stockholders' equity above $5 million as of September 18, 2023, such that the Company would be eligible for an extension of the period of time that the Company was provided by Nasdaq to regain compliance with Nasdaq's $1.00 minimum bid price requirement, which extension the Company expects Nasdaq to grant later this week.
About Kidpik Corp.
Founded in 2016, KIDPIK (NASDAQ:PIK) is an online clothing subscription box for kids, offering mix & match, expertly styled outfits that are curated based on each member's style preferences. KIDPIK delivers a surprise box monthly or seasonally, providing an effortless shopping experience for parents and a fun discovery for kids. Each seasonal collection is designed in-house by a team with decades of experience designing childrenswear. KIDPIK combines the expertise of fashion stylists with proprietary data and technology to translate kids' unique style preferences into surprise boxes of curated outfits. We also sell our branded clothing and footwear through our e-commerce website, shop.kidpik.com. For more information, visit www.kidpik.com.