Global Sports Halts Stock Offering
Global Sports, which operates e-commerce businesses for the Athlete's Foot, Sports Authority and other brick-and-mortar sporting goods stores, has called off a follow-on public offering and announced a $25 million infusion from three investment partners. The three, Times Mirror Chandler Trust Ventures, SOFTBANK Capital Partners and SOFTBANK Capital Advisors Fund, will acquire 3.1 million shares of Global Sports stock at $8 per share, with the right to buy an additional $15.6 million stake at $10 per share at a future date.
Global Sports says proceeds for the current investment will be used for working capital, capital expenditures and general corporate purposes. Global Sports filed its registration statement with the Securities and Exchange Commission on April 3 and had planned an offering of 5 million shares.
"Given the recent volatility in the public markets, we believe it is prudent for the company to cancel our planned follow-on offering," says Michael Rubin, chairman and CEO of Global Sports.
Global Sports plans to report its results of operations for the first quarter of fiscal 2000 on May 4.
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