VNCE - Vince and Authentic Brands Group enter partnership

2023-04-24 09:21:47 ET

Vince ( NYSE: VNCE ) and Authentic Brands Group enter a strategic arrangement whereby VNCE contributes its intellectual property to a newly formed Authentic subsidiary for total consideration of $76.5M million in cash and 25% membership interest in ABG Vince.

Through the agreement, Authentic will own the majority stake of 75% membership interest in ABG Vince.

Proceeds from the new partnership to strengthen its overall liquidity position, increase its working capital, and repay in full the outstanding balance of $27.7M under its term loan credit facility, and to repay a portion of the outstanding borrowings under its revolving credit facility.

The transaction is expected to close within Q2 2023.

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