Stanley Furniture Company, Inc. (Nasdaq-NGS:STLY) announced today that it has set the terms for its previously announced rights offering.
Under the terms of the rights offering, Stanley Furniture will distribute, at no charge, to the holders of its common stock as of 5:00 p.m., New York time, on November 15, 2010, one transferable subscription right for each share of Stanley Furniture common stock then owned. Each subscription right will entitle the holder to purchase .322226 shares of common stock at a purchase price of $3.00 per share. Assuming the rights offering is fully subscribed, Stanley Furniture currently expects the gross proceeds of the offering to be approximately $10 million.
The rights offering also includes an over-subscription privilege, which entitles a holder who exercises all of its basic subscription privilege in full the right to purchase additional shares of common stock that remain unsubscribed at the expiration of the rights offering, subject to the availability and pro rata allocation of shares among persons exercising this over-subscription right. If there are not enough unsubscribed shares to honor all requests from the over-subscription privilege, Stanley Furniture may, at its discretion, elect to issue up to approximately 666,600 over-allotment shares to honor requests from the over-subscription privilege. If the over-allotment shares are issued maximum gross proceeds in the offering would be approximately $12 million.
Stanley Furniture also announced that the mailing of offering materials to stockholders is expected to begin on November 17, 2010 and that the subscription period will expire at 5:00 p.m., New York time, on December 8, 2010.
The shares issued in connection with the rights offering will be listed on the Nasdaq Global Select Market, and the rights are expected to trade on the Nasdaq Global Select Market until the day before the expiration of the subscription period.
Stanley Furniture reserves the right to modify, extend, postpone or cancel the rights offering at any time prior to the closing of the sale of the shares in the offering.