Nitches issued an aggregate of 577,500 Warrants in connection with the transaction. The Warrants are five (5) year warrants to purchase Common Stock at a price of $4.12 per share, subject to adjustment, including full-ratchet anti-dilution protection.
As part of the transaction, Nitches entered into a Registration Rights Agreement with the investors. Nitches agreed to file a registration statement covering the resale of the shares of Common Stock that may be issued to investors upon the conversion of the Debentures and the exercise of the Warrants, and to maintain the effectiveness of that registration statement (subject to certain limitations) for a period of time until the holders can sell the underlying Common Stock without volume restrictions under Rule 144. If Nitches fails to meet its registration obligations, it may be required to pay to the investors in cash liquidated damages.
The amount of liquidated damages is equal to 1.0% of the principal amount outstanding for any 30 day period, or pro rata portion thereof, that such a failure continues during the first year the Debenture is outstanding and 0.5 % of the principal amount outstanding for any 30 day period, or pro rata portion thereof, that such a failure continues during the second year the Debenture is outstanding.
Nitches Inc has been designing and marketing quality apparel for niche markets since 1971. The Company's women's product lines include sleepwear and loungewear by Body Drama, women's western wear and outerwear by Adobe Rose, Saguaro and Southwest Canyon. The Company's menswear offerings include Nat Nast, Dockers and Newport Blue swimwear and graphic t-shirts, The Skins Game golf apparel, and ZOIC performance cycling apparel.
marketing@alchempro.com
