MISGAV, Israel, March 29, 2010 /PRNewswire-FirstCall/ -- Tefron
(OTC: TFRFF.OB, TASE: TFRLF), a manufacturer of boutique-quality
seamless intimate apparel, active wear and swim wear today
announced that it had completed its two stage fund raising program,
raising gross proceeds of approximately $4
million. In the first stage, the rights offering yielded
gross proceeds of $2.9 million.
Tefron issued the subscribing shareholders 754,384 ordinary shares
at a per share price of $3.8. In the
second stage of the fund raising, Tefron's major shareholder,
Norfet, Limited Partnership, has agreed that it or its designee(s)
would purchase shares from Tefron in a private placement following
the rights offering at a price per share identical to the price per
share in the rights offering. Based on the amount raised by Tefron
in the rights offering, the amount invested by Norfet's designees
was approximately $1.1 million.
Tefron intends to use the net proceeds from the fund raising
program towards financing of general corporate purposes, including
working capital, labor, energy and raw material costs in accordance
with Tefron's needs and in accordance with resolutions of Tefron's
board of directors from time to time.
Commenting on the rights issue, CEO Amit
Meridor said, "We are pleased with the outcome of the rights
issue indicating shareholder trust in our turnaround program. In
addition, I am pleased to announce that we have been able to
renegotiate the terms of our main facilities leasing contract. The
new agreement will achieve significant savings in rental and
related costs per year. The proceeds from the fund raising,
combined with the bank refinancing program which was signed earlier
this month, and the new facilities lease will contribute to an
important strengthening of Tefron's financial position starting in
2010."
Mr. Meridor continued, "Now that the financial restructuring is
in place, our focus in 2010 will be on aggressively restructuring
our manufacturing processes to ensure strict quality control,
shortened lead times, and on-time delivery. In order to achieve
these objectives, we are in the process of rebuilding all our
manufacturing activities to be more cost efficient and responsive
to customer needs and time requirements. We also plan to further
strengthen our management team with the appointment of several
industry specialists with extensive sector and managerial
expertise.
Looking forward, Mr. Meridor projected that "as the
implementation of more efficient manufacturing processes soon
begins to yield greater customer satisfaction and higher sales, our
next goal will be better management of Tefron's innovation process,
focusing on closer coordination between the R&D and
manufacturing requirements and on understanding the markets of our
customers. Tefron has an exceptionally strong base of international
name-brand customers and through the focused efforts of our teams
to improve the efficiency and profitability of the R&D and
manufacturing functions, our customers will enjoy higher quality
and more innovative products, as well as more consistent,
dependable customer service which will both serve to re-establish
Tefron's leadership position in the industry."
About Tefron
Tefron manufactures boutique-quality everyday seamless intimate
apparel, active wear and swim wear sold throughout the world by
such name-brand marketers as Victoria's Secret, Nike, lululemon
athletica, Warnaco/Calvin Klein,
Walmart Stores Inc, The Gap, J. C.
Penney, Maidenform, Patagonia, Reebok, and El Corte Ingles,
as well as other well known retailers and designer labels. The
company's product line includes knitted briefs, bras, tank tops,
boxers, leggings, crop, T-shirts, nightwear, bodysuits, swim wear,
beach wear and active-wear.
This press release contains certain forward-looking statements,
within the meaning of Section 27A of the US Securities Act of 1933,
as amended, Section 21E of the US Securities Exchange Act of 1934,
as amended, and the safe harbor provisions of the US Private
Securities Litigation Reform Act of 1995, with respect to the
Company's business, financial condition and results of operations.
We have based these forward-looking statements on our current
expectations and projections about future events.
Words such as "believe," "anticipate," "expect," "intend,"
"will," "plan," "could," "may," "project," "goal," "target," and
similar expressions often identify forward-looking statements but
are not the only way we identify these statements. Except for
statements of historical fact contained herein, the matters set
forth in this press release regarding our future performance, plans
to increase revenues or margins and any statements regarding other
future events or future prospects are forward-looking
statements.
These forward looking statements are subject to risks and
uncertainties that could cause actual results to differ materially
from those contemplated in such forward-looking statements,
including, but not limited to:
- the effect of the worldwide recession on our sales to our
customers in the United States and in Europe and on our ability to
finance our operations;
- our customers' continued purchase of our products in the same
volumes or on the same terms;
- the cyclical nature of the clothing retail industry and the
ongoing changes in fashion preferences;
- the competitive nature of the markets in which we operate,
including the ability of our competitors to enter into and compete in
the seamless market in which we operate;
- the potential adverse effect on our business resulting from our
international operations, including increased custom duties and import
quotas (e.g. in China, where we manufacture for our swimwear division).
- fluctuations in inflation and currency rates;
- the potential adverse effect on our future operating efficiency
resulting from our expansion into new product lines with more
complicated products, different raw materials and changes in market
trends;
- the purchase of new equipment that may be necessary as a result
of our expansion into new product lines;
- our dependence on our suppliers for our machinery and the
maintenance of our machinery;
- fluctuations in the costs of raw materials;
- our dependence on subcontractors in connection with our
manufacturing process;
- our failure to generate sufficient cash from our operations to
pay our debt;
- political, economic, social, climatic risks, associated with
international business and relating to operations in Israel;
as well as certain other risks detailed from time to time in the
Company's filings with the Securities and Exchange Commission. The
Company undertakes no obligation to publicly release any revisions
to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Contacts
Company Contact:
Eran Rotem
Chief Financial Officer
+972-4-990-0881
reran@tefron.com
SOURCE Tefron Ltd