Coastal Contacts Announces Proposed Offering of Common Shares
November 09 2012 - 7:27AM
Coastal Contacts Inc. ("Coastal") (Nasdaq:COA) (TSX:COA)
(Stockholm:COA.ST), an online retailer of vision care products,
announced today that it intends to offer, on a marketed basis,
common shares (the "Common Shares") of Coastal to raise aggregate
gross proceeds of approximately U.S.$40.0 million, approximately
U.S.$35.5 million for the account of Coastal and approximately
U.S.$4.5 million for the account of certain of Coastal's directors
and executive officers (the "Selling Shareholders"). Coastal will
not receive any proceeds from the sale of Common Shares by the
Selling Shareholders. The offering of Common Shares by Coastal
and the Selling Shareholders is collectively referred to as the
"Offering." The Offering will be priced in the context of the
market with the final terms of the Offering to be determined at the
time of pricing.
William Blair & Company, L.L.C., is acting as sole
bookrunning manager, and Roth Capital Partners, LLC, Craig-Hallum
Capital Group LLC, Octagon Capital Corporation and PI Financial
Corp. are acting as co-managers of the Offering (collectively, the
"Underwriters"). Coastal will also grant the Underwriters an
over-allotment option to purchase additional Common Shares on the
same terms as the Offering, in an amount equal to up to 15% of the
number of Common Shares sold pursuant to the Offering, to cover
over-allotments, if any, and for market stabilization
purposes. This option will be exercisable for a period of 30
days following closing.
Coastal intends to use the net proceeds from the Offering to
accelerate its customer acquisition strategy, make certain capital
expenditures and improve working capital to fund growth in new and
existing distribution channels.
The Offering will be made pursuant to a supplement dated
November 9, 2012 (the "Prospectus Supplement") to Coastal's short
form base shelf prospectus dated November 7, 2012 (the "Shelf
Prospectus"), both filed in British Columbia and Ontario, as well
as in the United States as part of an effective registration
statement on Form F-10 filed with the U.S. Securities and Exchange
Commission in accordance with the multi-jurisdictional disclosure
system adopted by the United States and Canada.
When available, copies of the Prospectus Supplement and the
Shelf Prospectus may be obtained from William Blair & Company,
L.L.C., Attention: Prospectus Department, 222 West Adams Street,
Chicago, Illinois 60606, or by email at prospectus@williamblair.com
or by calling toll-free 800-621-0687.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
these securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
Closing of the Offering will be subject to certain conditions,
including receipt of approvals of The NASDAQ Stock Market LLC and
the Toronto Stock Exchange. The Offering is subject to market
conditions, and there can be no assurance as to whether or when the
Offering may be completed, or as to the actual size or terms of the
Offering.
About Coastal Contacts
Coastal Contacts Inc. is one of the largest online retailers of
vision care products in the world. Coastal empowers customers to
easily browse, try on and buy eyewear—saving time, money and
sanity. With every pair of qualifying frames purchased, Coastal
donates a pair to someone in need through its Change the View
project. Founded in 2000, Coastal designs, produces and distributes
the largest selection of glasses and contact lenses on the
Internet, including a unique combination of designer glasses,
contact lenses, sunglasses, and vision care accessories. Coastal
serves customers in more than 150 countries through the Coastal
Contacts family of websites including: Coastal.com,
ClearlyContacts.ca, Lensway.com, Lensway.co.uk, Lensway.se,
Lensway.com.br, ClearlyContacts.com.au, ClearlyContacts.co.nz,
Contactsan.com, and Coastallens.com.
CONTACT: Terry Vanderkruyk
Vice President, Corporate Development
Coastal Contacts Inc.
604.676.4498
terryv@coastal.com
or
Liolios Group Inc.
Scott Liolios or Cody Slach
949.574.3860
COA@liolios.com
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