Raleigh, NC, Aug. 16, 2017 (GLOBE NEWSWIRE) -- Guess & Co. Corporation a luxury, industrial, health care and real estate company based in North Carolina announced today that it intends to raise capital. The company plans to sell up to $250 million in common shares through a private placement offering. It is expected that the securities will be sold at $125.00 per share. The share price would be $25.00 over the company's par value of $100.00 per share. Guess & Co. Corporation is projecting $250 million in consolidated gross revenue and $50 million in consolidated pre-tax net income for the year ending December 31, 2017. For the year ending December 31, 2018, the company is anticipating overall revenue of $1 billion and consolidated pre-tax net income of $200 million.
Guess & Co. Corporation plans to sell up to 2 million shares with projected gross proceeds of $250 million prior to the payment of placement agent fees and other offering expenses. The company intends to use funds from the offering for acquisitions, business development and general corporate purposes. Acquisitions of exisiting companies is a fundamental part of Guess & Co. Corporation's business strategy. The company plans to spend at least $175 million for acqusitions during the 12 months following the offering. Approximately $50 million will be used for general corporate purposes and $25 million for business development expenses including product design, branding, marketing and advertising. The securities to be sold will be common shares with voting rights. The offering is expected to occur no later than September 15, 2017.
The company's luxury unit is expected to generate approximately $50 million in gross revenue for 2017. The primary businesses of the luxury unit are hotel development, home building, diamond distribution and private club development. Industrial business operations, the most diversified unit of the company, is expected to contribute approximately $100 million in 2017 gross revenue derived from infrastructure development, commodities trading and transport, natural resource products, and technology products. The company's heathcare unit operations are expected to generate $75 million in 2017 gross revenue from the sale of medical devices, medical supplies, advisory/consulting solutions and contract health services. Approximately $25 million in 2017 gross revenue is expected to come from the company's real estate group. The real estate unit's operations consist of corporate housing/relocation solutions, construction, commercial property development and planned real estate joint ventures.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state in which such offer or sale would be unlawful prior to the registration or qualification under the securities laws of such state.
About Guess & Co. Corporation
Guess & Co. Corporation is a diversified company with four primary business units which are the luxury group, the industrial group, the health care group and the real estate group. We are based in Raleigh, North Carolina and conduct business in the United States and abroad. Most of our businesses are built organically, and we pursue acquisitions of existing companies that will compliment our current operations.
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Media Relations Guess & Co. Corporation 984-201-6390 email@example.com
Source:Guess & Co.Corporation