Crumbs Bakeshop, Inc. Completes $9.8 million in Equity Financing
Crumbs Bake Shop, Inc., the nation’s largest specialty cupcake retailer, today announced that it has executed a Securities Purchase Agreement with accredited investors pursuant to which it has agreed to sell 4,456,968 shares of its common stock at a price of $2.21 per share, resulting in gross proceeds to the Company of $9.8 million. Closing of the transaction is expected to occur on October 11, 2012.
After paying its expenses related to the transaction, the Company intends to use the net proceeds to fund new store growth, and to bolster general working capital in order to strengthen its financial condition.
“We are pleased with the support for Crumbs from the financial community, and are excited to have closed on this private placement. Clearly, we now have the desired additional capital to fund our new store growth strategy, and to strengthen our financial position,” says Julian R. Geiger, president and CEO of Crumbs. “With our capital needs now met, we can execute our real estate strategy of opening up to 25 new in-line stores and kiosks in hand picked super regional malls in 2013.”
Janney Montgomery Scott LLC acted as the lead financial advisor and Susman Partners LLC d/b/a Threadstone Partners acted as the co-financial advisor to Crumbs Bake Shop, Inc. in the transaction.