Form 8-K for AMERICAN APPAREL, INC
--------------------------------------------------------------------------------
7-Feb-2008
Material Modification to Rights of Security Holders, Financial Statements a
ITEM 3.03 MATERIAL MODIFICATION TO RIGHTS OF SECURITY HOLDERS
On February 6, 2008, American Apparel, Inc. (the "Company") called for redemption all of its issued and outstanding warrants, which trade separately on the American Stock Exchange under the symbol APP.WS or trade on the American Stock Exchange as part of the Company's units (which consist of one share of common stock and one warrant) under the symbol APP.U. The redemption date for the warrants is March 7, 2008.
Warrant holders may exercise their warrants at any time prior to March 7, 2008, the date of redemption. If any warrants are not exercised before March 7, 2008, those warrants will be canceled and holders of those warrants will be paid $0.01 per warrant and will no longer have the right to purchase any shares underlying those warrants.
To exercise their warrants, warrant holders must either deliver their warrant or unit certificate(s) together with the exercise price of $6.00 per warrant or elect to exercise on a cashless basis. Warrant holders electing a cashless exercise must pay the exercise price by surrendering the warrants for that number of shares of common stock equal to the quotient obtained by dividing
(x) the product of the number of shares of common stock underlying the warrants, multiplied by the difference between the exercise price of the warrants and the "fair market value" (defined below) by (y) the fair market value. The "fair market value" means the average reported last sale price of shares of the Company's common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the warrant holders, which equals $11.89. Any fractional share issuable as a result of a cashless exercise will be rounded up to the nearest whole share.
A copy of the press release announcing the calling for redemption of the warrants is attached as Exhibit 99.1 to this Form 8-K and is incorporated herein by this reference.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits. The following exhibit is being furnished as part of this
report.
Exhibit
Number Description
99.1 Press Release dated February 6, 2008.
biz.yahoo.com
-------------------------------------------------------------------------------- |
