Monday December 13, 1:13 pm Eastern Time
Company Press Release
SOURCE: Perfumania, Inc.
Perfumania, Inc. Signs Irrevocable Option Agreements
with Alta Limited for The Sale of 2.5 million Shares of
perfumania.com, Inc.
MIAMI, Dec. 13 /PRNewswire/ -- Perfumania (Nasdaq: PRFM - news) the nation's largest perfumery chain, announced today that it has granted two irrevocable options to Alta Limited and other Optionees for the purchase of 2.5 million shares of perfumania.com, Inc.
Under terms of the first option, Alta may purchase 2 million shares of perfumania.com (Amex: PF - news) common stock from Perfumania, Inc. at $6.00 per share through January 15, 2000. The second option allows Alta the right to purchase an additional 500,000 shares of perfumania.com common stock from Perfumania, Inc. at $8.00 per share through December 31, 2000. If the options are fully exercised, Perfumania, Inc. will own 1.5 million shares of perfumania.com.
''If and when the first transaction is completed, the aggregate net contribution from all equity transactions during the fiscal year ending on January 31, 2000 to Perfumania, Inc.'s balance sheet will be in excess of $28 million,'' stated Ilia Lekach, Chairman and Chief Executive Officer.
Perfumania, Inc. is a leading specialty retailer and wholesale distributor of a wide range of brand-name and designer fragrances with approximately $180 million in annual sales. The Company operates a chain of approximately 280 retail stores specializing in the sale of fragrances at prices discounted up to 75 percent below the manufacturer's suggested retail prices. The Company's wholesale division, one of the largest in the United States, distributes fragrances and related products to national and regional chains and other wholesale distributors throughout North America and overseas.
This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. Such risks and uncertainties are described in the Company's filings with the SEC, including its Registration Statement on Form S-1.
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