Children's Place surges on $78.6 mln financing agreement with Mithaq Capital

Children's Place

29/02/2024 14:21

** Shares of apparel retailer Children's Place  PLCE.O  up
~30% at $24.66 premarket
    ** Co announces $78.6 mln interest-free, unsecured and
subordinated term loan agreement with its majority shareholder
Mithaq Capital
    ** Adds the new financing would strengthen the co's
liquidity position
    ** Co says Saudi investment firm Mithaq Capital provided an
initial tranche of $30 mln on Feb. 29 and will provide
additional $48.6 mln around March 29
    ** Co also appoints four new directors, nominated by Mithaq
Capital, to its board
    ** Adds in conjunction with these appointments, four of the
current directors have resigned
    ** Earlier this month, the stock more than doubled after
investor Mithaq took majority ownership in PLCE, and jumped 19%
a day later after co entered into term loan agreement with
Gordon Brothers
    ** Stock was down nearly 36% in 2023, and fell about 17% YTD
through last close

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