SHERMAN OAKS, Calif., Nov. 29, 2016 (GLOBE NEWSWIRE) -- Entry Into Hi-Tec Acquisition Documents Cherokee Inc. ("Cherokee" or the "Company") (NASDAQ:CHKE), a global marketer and manager of a portfolio of fashion and lifestyle brands, today announced that it has entered into a definitive agreement to acquire all issued and outstanding share capital of Hi-Tec Sports International Holdings B.V. ("Hi-Tec"), a global footwear company, for an aggregate cash purchase price of approximately $95.8 million on a cash-free debt-free basis, based on normalized working capital (the "Hi-Tec Acquisition"). Subject to post-closing adjustments, and after giving effect to the asset sales and the other transactions described below, we expect that the purchase price for the Hi-Tec intellectual property assets to be retained by us will be approximately $62.0 million. The Company has entered into definitive agreements to sell certain assets related to Hi-Tec's wholesale operations to new operating partners, the proceeds of which will be used to fund a portion of the Hi-Tec Acquisition. Prior to or in connection with the closing of the Hi-Tec Acquisition, the new operating partner licensees have entered or will enter into license agreements with Cherokee, pursuant to which each operating partner will pay the Company royalties for the future use of certain Hi-Tec intellectual property. To fund a portion of the purchase price, the Company also entered into a commitment letter for a new $50 million credit facility with Cerberus Business Finance, LLC and a commitment letter for a $5 million receivables funding loan to be provided by Mr. Jess Ravich, Chairman of the Company's Board of Directors. Pricing of Public Offering of Common Stock The Company also today announced that it has priced an underwritten public offering of 3,685,000 shares of its common stock at a public offering price of $9.50 per share for total gross proceeds of approximately $35 million. Additionally, the Company has granted the underwriters a 45-day option to purchase up to an additional 552,750 shares to cover over-allotments, if any. The offering is expected to close on or about December 2, 2016, subject to customary closing conditions.