General Finance Corporation Rights Offering Commences
General Finance Corporation (“General Finance”) (NASDAQ:GFN) (NASDAQ:GFNCW) (NASDAQ:GFNCU) announced today that the registration statement for its rights offering was declared effective by the Securities and Exchange Commission on May 7, 2010.
On May 14, 2010, the record date for the rights offering, General Finance will distribute, at no charge to holders of its common stock, rights to purchase units with an aggregate subscription price of $13,380,000. Each unit will consist of one share of General Finance common stock and a three-year Warrant to purchase 0.5 additional shares of General Finance common stock at an exercise price of $4.00 per share. Please review the prospectus contained within the registration statement for the rights offering for a complete description of all the terms of the rights offering.
In the rights offering, rights holders who fully exercise their rights will be entitled to subscribe, subject to certain limitations and subject to allotment, for additional units that remain unsubscribed as a result of any unexercised rights. General Finance retains the right to limit the exercise of over-subscription privileges if such exercise would cause a change of control, as defined in the agreements governing the indebtedness of its operating subsidiaries Pac-Van, Inc. (“Pac-Van”) or Royal Wolf Trading Australia Pty Limited and subsidiaries (“Royal Wolf”).
General Finance intends to use the proceeds of the rights offering to reduce indebtedness and for general corporate and working capital purposes.General Finance anticipates the following important dates for the rights offering, which dates are subject to change because the rights offering may be extended:
-- Record Date
|May 14, 2010|
-- Subscription Period Begins
|May 14, 2010|
-- Expiration Date
|June 15, 2010|
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