Kidpik Announces Termination of Merger Agreement and Decision Not to Appeal Suspension of Trading of its Common Stock on Nasdaq
Kidpik Corp. (PIKM) announced the termination of its merger agreement with Nina Footwear Corp. The merger was terminated due to failure to complete by December 31, 2024, deadline and Kidpik's inability to maintain Nasdaq listing requirements. Additionally, Kidpik decided not to appeal Nasdaq's delisting decision, acknowledging its inability to meet minimum shareholders' equity requirements.
The company's stock now trades on the OTC Pink Market under symbol PIKM, with warnings about potential information availability, reduced transparency, and increased volatility. Due to the delisting, Kidpik lost the opportunity to sell $1.5 million in convertible debentures.
Subject to financial capability, Kidpik may explore strategic alternatives including potential asset sale, company sale, another merger, liquidation, or other strategic actions, including potential bankruptcy. The company is controlled by Ezra Dabah, who owns 51% of Kidpik and, with his children, approximately 79.3% of Nina Footwear.
Kidpik Corp. (PIKM) ha annunciato la terminazione dell'accordo di fusione con Nina Footwear Corp. La fusione è stata annullata a causa del mancato completamento entro la scadenza del 31 dicembre 2024 e dell'impossibilità di Kidpik di mantenere i requisiti di quotazione del Nasdaq. Inoltre, Kidpik ha deciso di non presentare ricorso contro la decisione di delisting del Nasdaq, riconoscendo la propria incapacità di soddisfare i requisiti minimi di patrimonio netto degli azionisti.
Le azioni dell'azienda ora vengono scambiate sul OTC Pink Market con il simbolo PIKM, con avvertenze sulla potenziale disponibilità di informazioni, ridotta trasparenza e maggiore volatilità. A causa del delisting, Kidpik ha perso l'opportunità di vendere $1,5 milioni in obbligazioni convertibili.
In base alla capacità finanziaria, Kidpik potrebbe esplorare alternative strategiche, inclusa una potenziale vendita di asset, vendita dell'azienda, un'altra fusione, liquidazione o altre azioni strategiche, compresa la potenziale bancarotta. L'azienda è controllata da Ezra Dabah, che possiede il 51% di Kidpik e, insieme ai suoi figli, circa il 79,3% di Nina Footwear.
Kidpik Corp. (PIKM) anunció la terminación de su acuerdo de fusión con Nina Footwear Corp. La fusión fue cancelada debido a la falta de finalización antes de la fecha límite del 31 de diciembre de 2024 y la incapacidad de Kidpik para mantener los requisitos de cotización del Nasdaq. Además, Kidpik decidió no apelar la decisión de delisting del Nasdaq, reconociendo su incapacidad para cumplir con los requisitos mínimos de patrimonio de los accionistas.
Las acciones de la empresa ahora se comercian en el OTC Pink Market bajo el símbolo PIKM, con advertencias sobre la disponibilidad de información potencial, menor transparencia y mayor volatilidad. Debido al delisting, Kidpik perdió la oportunidad de vender $1.5 millones en bonos convertibles.
Sujeto a la capacidad financiera, Kidpik podría explorar alternativas estratégicas que incluyen la posible venta de activos, venta de la empresa, otra fusión, liquidación u otras acciones estratégicas, incluyendo la posible quiebra. La empresa está controlada por Ezra Dabah, quien posee el 51% de Kidpik y, junto con sus hijos, aproximadamente el 79.3% de Nina Footwear.
Kidpik Corp. (PIKM)는 Nina Footwear Corp.와의 합병 계약 종료를 발표했습니다. 합병은 2024년 12월 31일 마감일까지 완료하지 못한 이유로 종료되었으며, Kidpik은 Nasdaq 상장 요구 사항을 유지할 수 없었습니다. 또한 Kidpik은 최소 주주 자본 요구 사항을 충족하지 못함을 인정하며 Nasdaq의 상장 폐지 결정에 대해 항소하지 않기로 결정했습니다.
현재 회사의 주식은 OTC Pink Market에서 PIKM 기호로 거래되고 있으며, 정보 가용성, 투명성 저하 및 변동성 증대에 대한 경고가 있습니다. 상장 폐지로 인해 Kidpik은 150만 달러 상당의 전환사채를 판매할 기회를 잃었습니다.
재정적인 여건에 따라 Kidpik은 잠재적인 자산 매각, 회사 매각, 또 다른 합병, 청산 또는 파산을 포함한 기타 전략적 행동을 포함하여 전략적 대체 방안을 모색할 수 있습니다. 이 회사는 Ezra Dabah에 의해 통제되며, 그는 Kidpik의 51%를 소유하고 있으며 자녀들과 함께 Nina Footwear의 약 79.3%를 소유하고 있습니다.
Kidpik Corp. (PIKM) a annoncé la résiliation de son accord de fusion avec Nina Footwear Corp. La fusion a été annulée en raison de l'incapacité à la finaliser d'ici la date limite du 31 décembre 2024 et de l'incapacité de Kidpik à respecter les exigences de cotation du Nasdaq. En outre, Kidpik a décidé de ne pas faire appel de la décision de radiation du Nasdaq, reconnaissant son incapacité à répondre aux exigences minimales de capitaux propres des actionnaires.
Les actions de l'entreprise se négocient désormais sur le OTC Pink Market sous le symbole PIKM, avec des avertissements concernant la disponibilité potentielle des informations, la transparence réduite et la volatilité accrue. En raison de la radiation, Kidpik a perdu l'opportunité de vendre 1,5 million de dollars en obligations convertibles.
Selon la capacité financière, Kidpik pourrait explorer des alternatives stratégiques, y compris la vente potentielle d'actifs, la vente de l'entreprise, une autre fusion, la liquidation ou d'autres actions stratégiques, y compris une éventuelle faillite. L'entreprise est contrôlée par Ezra Dabah, qui détient 51 % de Kidpik et, avec ses enfants, environ 79,3 % de Nina Footwear.
Kidpik Corp. (PIKM) kündigte die Beendigung ihres Fusionsvertrags mit Nina Footwear Corp. an. Die Fusion wurde aufgrund des Versäumnisses, bis zum 31. Dezember 2024, die Frist einzuhalten und der Unfähigkeit von Kidpik, die Nasdaq-Listing-Anforderungen zu erfüllen, beendet. Darüber hinaus entschied sich Kidpik, die Entscheidung zur Delistung von Nasdaq nicht anzufechten und erkannte seine Unfähigkeit an, die Mindestanforderungen an das Eigenkapital der Aktionäre zu erfüllen.
Die Aktien des Unternehmens werden nun unter dem Symbol PIKM im OTC Pink Market gehandelt, wobei Warnungen über potenzielle Informationsverfügbarkeit, reduzierte Transparenz und erhöhte Volatilität ausgegeben werden. Aufgrund der Delistung verlor Kidpik die Möglichkeit, 1,5 Millionen Dollar in wandelbaren Anleihen zu verkaufen.
Vorbehaltlich der finanziellen Möglichkeiten könnte Kidpik strategische Alternativen untersuchen, einschließlich des möglichen Verkaufs von Vermögenswerten, des Verkaufs des Unternehmens, einer weiteren Fusion, Liquidation oder anderer strategischer Maßnahmen, einschließlich einer möglichen Insolvenz. Das Unternehmen wird von Ezra Dabah kontrolliert, der 51 % von Kidpik besitzt und zusammen mit seinen Kindern etwa 79,3 % von Nina Footwear hält.
- None.
- Merger agreement with Nina Footwear terminated
- Delisted from Nasdaq Capital Market
- Lost opportunity to raise $1.5M through convertible debentures
- Trading downgraded to OTC Pink Market with reduced liquidity and transparency
- Company considering potential bankruptcy among strategic alternatives
- financial resources to explore strategic alternatives
NEW YORK, NY / ACCESSWIRE / January 8, 2025 / Kidpik Corp. ("Kidpik" or the "Company"), an online clothing subscription-based e-commerce company, today announced the termination of the previously announced Agreement and Plan of Merger and Reorganization with Nina Footwear Corp., a Delaware corporation ("Nina Footwear"), and Kidpik Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Kidpik ("Merger Sub"), which contemplated Merger Sub being merged with and into Nina Footwear, with Nina Footwear surviving as a wholly-owned subsidiary of Kidpik (the "Merger"). The Merger was terminated by Nina Footwear due to the parties' failure to complete the Merger by the previously agreed deadline of December 31, 2024, and Kidpik's failure to meet the condition to closing of the Merger which required Kidpik's common stock to be traded on Nasdaq at closing.
Kidpik is controlled by Mr. Ezra Dabah, the Chief Executive Officer, Chairman, and majority stockholder (
As a result of the termination of the Merger, Kidpik will continue to operate as a standalone publicly-traded company on the OTC Markets.
Separately, Kidpik announced today that it has determined not to move forward with an appeal of the decision by Nasdaq to delist the trading in the Company's common stock on Nasdaq's Capital Market. Kidpik determined that with the termination of the Merger, it would be unable to timely meet the Exchange's minimum shareholders' equity rule and that such an appeal would likely be denied.
The Company's common stock is currently quoted on the OTC Markets' "OTC Pink Market" tier under the symbol "PIKM". The Company can provide no assurances that any broker-dealer will continue to make a market in its common stock or that trading levels, liquidity, or quotation prices will be maintained. The Company also cautions its shareholders that trading on the "OTC Pink Market" may be subject to limited availability of information, reduced transparency, and greater volatility.
With the delisting of the Company's common stock from Nasdaq, the Company no longer meets the required conditions precedent to the sale of up to an additional
Following the termination of the Merger, to the extent that Kidpik has the financial means to do so, Kidpik may explore strategic alternatives focused on maximizing shareholder value including a potential sale of assets of the Company, a sale of the Company, another merger, liquidation or other strategic action, including a potential bankruptcy. There can be no assurance that Kidpik will have sufficient funding to explore strategic alternatives, that the exploration of strategic alternatives will result in any agreements or transactions, or that, if completed, any agreements or transactions will be successful or on attractive terms. Kidpik does not expect to disclose or provide an update concerning developments related to this process until Kidpik enters into definitive agreements or arrangements with respect to a transaction or otherwise determines that other disclosure is necessary or appropriate.
About Kidpik Corp.
Founded in 2016, KIDPIK (OTC PINK:PIKM) is an online clothing subscription box for kids, offering mix & match, expertly styled outfits that are curated based on each member's style preferences. KIDPIK delivers a surprise box monthly or seasonally, providing an effortless shopping experience for parents and a fun discovery for kids. Each seasonal collection is designed in-house by a team with decades of experience designing childrenswear. KIDPIK combines the expertise of fashion stylists with proprietary data and technology to translate kids' unique style preferences into surprise boxes of curated outfits. We also sell our branded clothing and footwear through our e-commerce website, shop.kidpik.com. For more information, visit www.kidpik.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this press release regarding matters that are not historical facts, are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 (the "PSLRA"). These include, but are not limited to, statements relating to exploring strategic alternatives, to the extent that the Company has the financial means to do so, that may include the sale of assets of the Company, a sale of the Company, a merger or other strategic action, including bankruptcy, the timing of such strategic alternatives and the value to shareholders resulting therefrom, including, but not limited to the fact that shareholders may receive no value in a bankruptcy and may have their equity cancelled, considering the Company's significant outstanding debt; projections and estimates of Kidpik's corporate strategies, future operations and plans, including the costs thereof; and other statements regarding management's intentions, plans, beliefs, expectations or forecasts for the future; the ability of the Company to obtain additional funding, the terms of such funding and potential dilution caused thereby; the continuing effect of changes in interest rates and inflation on Kidpik's operations, sales, and market for its products; deterioration of the global economic environment; rising interest rates and inflation and Kidpik's ability to control costs, including employee wages and benefits and other operating expenses; Kidpik's prior decision to cease purchasing new products and the resulting reduced revenues associated therewith; Kidpik's history of losses; Kidpik's ability to maintain current members and customers and grow members and customers; risks associated with the effect of global pandemics, and governmental responses thereto on Kidpik's operations, those of Kidpik's vendors, Kidpik's customers and members and the economy in general; increased shipping costs due to inflation and other matters; disruptions at Kidpik's warehouse facility and/or of its data or information services, Kidpik's ability to locate warehouse and distribution facilities and the lease terms of any such facilities; issues affecting Kidpik's shipping providers; disruptions to the internet; risks that effect Kidpik's ability to successfully market products to key demographics; the effect of data security breaches, malicious code and/or hackers; increased competition and Kidpik's ability to maintain and strengthen Kidpik's brand name; the fact that Kidpik's Chief Executive Officer has majority voting control over Kidpik; Kidpik's ability to comply with the covenants of securities purchase agreements and termination rights associated therewith; Kidpik's ability to prevent credit card and payment fraud; the risk of unauthorized access to confidential information; Kidpik's ability to protect intellectual property and trade secrets, claims from third-parties that Kidpik has violated their intellectual property or trade secrets and potential lawsuits in connection therewith; Kidpik's ability to comply with changing regulations and laws, penalties associated with any non-compliance (inadvertent or otherwise), the effect of new laws or regulations, and Kidpik's ability to comply with such new laws or regulations; changes in tax rates; Kidpik's reliance and retention of management; the outcome of future lawsuits, litigation, regulatory matters or claims; and others that are included from time to time in filings made by Kidpik with the Securities and Exchange Commission, many of which are beyond the control of Kidpik, including, but not limited to, in the "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" sections in Kidpik's Form 10-Ks and Form 10-Qs and in its Form 8-Ks, which it has filed, and files from time to time, with the Securities and Exchange Commission, including, but not limited to its Annual Report on Form 10-K for the year ended December 30, 2023 and its Quarterly Report on Form 10-Q for the quarter ended September 28, 2024. These reports are available at www.sec.gov and on Kidpik's website at https://investor.kidpik.com/sec-filings. Kidpik cautions that the foregoing list of important factors is not complete. All subsequent written and oral forward-looking statements attributable to Kidpik or any person acting on behalf of Kidpik are expressly qualified in their entirety by the cautionary statements referenced above. Other unknown or unpredictable factors also could have material adverse effects on Kidpik's future results and/or could cause their actual results and financial condition to differ materially from those indicated in the forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. Kidpik cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Except as required by law, Kidpik does not undertake any obligation to update publicly any forward-looking statements for any reason after the date of this press release to conform these statements to actual results or to changes in their expectations. If they update one or more forward-looking statements, no inference should be drawn that they will make additional updates with respect to those or other forward-looking statements.
Contact
Ezra Dabah
Investor@kidpik.com
SOURCE: Kidpik
View the original press release on accesswire.com
FAQ
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