Perfect Moment raises $6.4 million in private placement

LONDON - Perfect Moment Ltd. (NYSE American: PMNT), a luxury skiwear brand with a current market capitalization of $18.6 million, announced the closure of a private placement financing, raising approximately $6.4 million through its 12% Series AA Convertible Preferred Stock. The 1,723,989 shares issued are convertible into common stock at $1.1601 per share. According to InvestingPro analysis, the company currently trades at $1.10 per share, significantly below its 52-week high of $3.55, reflecting recent market challenges.

The financing saw participation from key stakeholders, including co-founder and chairman Max Gottschalk, who invested $2.0 million, demonstrating his confidence in the brand’s growth strategy and new leadership. Other contributors included institutional investors and Kahala19, LLC, which also converted a $2.0 million convertible note into common stock at $1.00 per share, effectively eliminating Perfect Moment’s convertible debt. InvestingPro data reveals the company operates with a moderate debt level, with a debt-to-equity ratio of 7.38 and a current ratio of 1.01, indicating tight but manageable liquidity.

The company plans to allocate the net proceeds towards strategic growth initiatives, working capital, and general corporate purposes. ThinkEquity LLC served as the placement agent, with legal representation by Manatt, Phelps & Phillips, LLP for Perfect Moment and Sichenzia Ross Ference Carmel LLP for the placement agent.

The investment follows the recent appointment of a new executive team, which has already implemented a transformation program aimed at operational efficiency, sustainable growth, and brand elevation. Initiatives include cost reductions, gross margin improvements, and more agile inventory and channel management.

Jane Gottschalk, Perfect Moment’s President and Chief Creative Officer, highlighted the alignment of the business and brand with the company’s vision, expressing enthusiasm for the global scaling of their vision.

Each Series AA Preferred Stock share is convertible into five common shares at the investor’s option, with the company having the right to mandate conversion under certain conditions after six months from the closing date. The Preferred Stock will pay a 12% annual cumulative cash dividend and is non-voting, except as required by law.

The company has committed to filing a resale registration statement with the U.S. Securities and Exchange Commission for the resale of the common stock underlying the Series AA Preferred Stock. The securities sold in the private placement have not been registered under the Securities Act of 1933 and were issued under exemptions from registration.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. The information provided is based on a press release statement.

In other recent news, Perfect Moment Ltd. announced that the NYSE American has accepted its compliance plan, allowing the company until June 11, 2026, to meet the exchange’s listing standards. This development follows notifications regarding the company’s stockholders’ equity position, which remains a key focus for maintaining its listing. Perfect Moment is undertaking strategic initiatives to enhance its financial standing, including expanding into the larger luxury outerwear market and improving operational efficiencies. As part of these efforts, the company has strengthened its management team by hiring key personnel from Canada Goose, and has opened its first U.S. distribution center, contributing to a notable improvement in gross margins for the fiscal third quarter.

Additionally, Perfect Moment has launched a new puffer tote bag and sunglasses collection, reflecting its strategic expansion into the luxury lifestyle market. The puffer bags, designed in collaboration with Venja Heimbeck Holt, offer practicality and style, while the sunglasses feature sustainable materials and cater to high-altitude sports enthusiasts. These product launches align with the company’s focus on diversifying its offerings within the growing luxury outerwear and sunglasses markets. The global luxury sunglasses market is expected to reach $6.4 billion in 2024, with a projected growth rate of 7.8% CAGR through 2033.

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