Children's Place more than doubles as investor group takes majority ownership

Children's Place

15/02/2024 15:32

(Updates)
    ** Shares of apparel retailer Children's Place  PLCE.O  up
as much as 125% at $32 - set for best day on record
    ** Co says Snowball Compounding and parties related to Saudi
investment firm Mithaq Capital notified PLCE they own ~54% of
co's common stock
    ** PLCE intends to accept Mithaq's request to enter
discussions for provision of financing to assist with co's
liquidity needs
    ** Parties also intend to nominate 11 persons to stand for
election to PLCE's board 
    ** Co adds as a result of Mithaq's "unsolicited acquisition"
of shares, Mithaq has triggered a change of control causing an
event of default under co's credit agreement
    ** PLCE earlier this month forecast a Q4 operating loss,
adding it was working to obtain new funding to support
operations, and was considering strategic alternatives if it is
unable to get new financing
    ** Co's shares fell nearly 37% on Friday after report of
needing more financing
    ** In 2023, stock fell nearly 36%  

 (Reporting by Anuja Bharat Mistry in Bengaluru)
 ((AnujaBharat.Mistry@thomsonreuters.com))