General Finance Corporation (“General Finance”) (NASDAQ: GFN) (NASDAQ: GFNCW) (NASDAQ: GFNCU) announced today that it is extending its ongoing subscription rights offering. Accordingly, holders of the subscription rights will now have until 5:00 p.m. Eastern Daylight Time (EDT) on June 25, 2010 to exercise their rights. The rights offering was originally scheduled to expire on June 15, 2010.
Under the terms of the rights offering, General Finance distributed, at no charge to holders of its common stock, rights to purchase units with an aggregate subscription price of $13,380,000. Each unit consists 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.
During the offering period for the rights offering, any person who received subscription rights from General Finance during the original offering period may exercise those rights that have not already been exercised. Other than the extension of the expiration date of the rights offering, all of the offering terms described in General Finance’s prospectus dated May 10, 2010 remain the same and apply during the extended period of the 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.