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Cosi Reports Planned Rights Offering - Quick Facts

Così Inc. (COSI: Quote) announced that it filed a registration statement on Form S-1 with the Securities and Exchange Commission for a rights offering to its existing shareholders.

The company said that it plans to make the rights offering through the distribution of non-transferable subscription rights to purchase shares of the Company's common stock at a subscription price to be determined and subject to an aggregate ownership limitation equal to 19.9% of the Company's common stock.

Assuming the rights offering is fully subscribed, the company currently expects to receive gross proceeds of approximately $15.0 million.

The company noted that it is planning to commence a rights offering in order to raise equity capital in a timely and cost-effective manner, while providing all of Così's shareholders the opportunity to participate.

The company added that the proposed rights offering will also include an over-subscription privilege, which will entitle each rights holder that exercises all of its basic subscription privilege in full the right to purchase additional shares of common stock that remain unsubscribed at the expiration of the rights offering, subject to the availability and pro rata allocation of shares among persons exercising this over-subscription right.

In conjunction with the rights offering, all of the company's executive officers and outside directors have agreed to purchase shares that are subject to their basic subscription privilege, at the same subscription price offered to shareholders.

Also, five of the company's executive officers and outside directors have agreed to purchase, at the same subscription price offered to shareholders, shares that would otherwise be available for purchase by them pursuant to the exercise of their over-subscription privileges. The total amount of commitments by the directors and executive officers is $1.65 million.

by RTT Staff Writer

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