- Stockholders of Stanley Furniture (STLY) approved the previously announced sale of substantially all of its assets to Churchill Downs LLC for ~$10.8M in cash, a subordinated promissory note in the principal amount of ~$7.4M, and a 5% equity interest in Buyer’s post-closing ultimate parent company.
- The Company used cash proceeds from the asset sale of ~$1.3M to pay the outstanding balance under its credit agreement with Wells Fargo (NYSE:WFC) and estimates additional transaction costs for the asset sale of ~$2.7M.
- In connection with this purchase agreement, the Company is changing its name to HG Holdings, Inc.
- Steven A. Hale II, Chairman of the Board, stated, “We’re pleased to close this transaction and thank the many people who contributed to its successful completion. The Company will now be able to focus solely on evaluating alternatives for deploying its cash and potentially deriving a benefit from the Company’s net operating loss carryforwards. We look forward to this next chapter in the Company’s history.”
- Previously: Stanley Furniture update results, revises sale agreement (Jan. 23)
- Previously: Stanley Furniture sells most of its assets (Nov. 20, 2017)
- Now read: TempurSealy: A Silver Lining To Its Recent Troubles
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