|By PR Newswire||
|April 21, 2014 08:30 AM EDT||
LOS ANGELES, April 21, 2014 /PRNewswire/ -- Nova LifeStyle, Inc. (NASDAQ-GM: 'NVFY'), a U.S.-based fast growing, innovative designer, manufacturer and distributor of modern LifeStyle furniture, is pleased to announce the completion of approximately $8.95 million registered direct placement of common stock and warrants with several institutional investors on April 17, 2014. The Company sold 1,320,059 shares of common stock to the institutional investors at a price of $6.78 per share.
As part of the transaction, the Company issued to the investors: Series A Warrants for the purchase of up to 660,030 shares of common stock in the aggregate at an exercise price of $8.48 per share, which warrants have a term of 48 months from the date of issuance; Series B warrants for the purchase of up to 633,628 shares of common stock in the aggregate at an exercise price of $6.82 per share, which warrants have a term of 6 months from the date of issuance; and Series C warrants for the purchase of up to 310,478 shares of common stock in the aggregate at an exercise price of $ 8.53 per share which warrants have a term of 48 months from the date of issuance. Should all of the above warrants be exercised in cash, the Company could potentially raise up to an additional $12,566,774.70 in gross proceeds.
FT Global Capital, Inc. acted as the exclusive placement agent for the transaction and Axiom Capital Management, Inc. acted as advisor.
"We are very pleased to have successfully completed this transaction, and believe the institutional investment community's strong support for this offering is a solid endorsement of our business model," stated Tawny Lam, President of Nova LifeStyle, Inc. "This transaction not only allows us to further expand our investor base, but also provides sufficient capital that will support our key 2014 growth initiatives of expanding our global distribution and increasing our sales of higher-margin branded products, through our supply agreement with IKEA for China, and HOME CENTRE, LLC. in the Middle East, as well as the development of our E-Commerce Platform targeting the China market. We expect these initiatives to contribute significantly to both our sales and profitability in fiscal 2014 and fiscal 2015."
For further details of this transaction, please see the Form 8-K A filed with the SEC on April 14, 2014.
About Nova LifeStyle, Inc.
Nova LifeStyle, Inc., a NASDAQ Global Markets Exchange listed company headquartered in California, is a fast growing, innovative designer and manufacturer of modern LifeStyle furniture; primarily sofas, dining rooms, cabinets, office furniture and related components, bedrooms, and various accessories in matching collections. Nova's products are made in the US, Europe, and Asia and include LifeStyle brands such as Diamond Sofa, Colorful World, Giorgio Mobili, Nova QwiK, and Bright Swallow International. Nova's products feature urban contemporary styles that integrate comfort and functionality incorporating upscale luxury designs appealing to LifeStyle-conscious middle and upper middle-income consumers in the U.S., China, Europe, and elsewhere in the world. To learn more about Nova LifeStyle, Inc., please visit our website at www.NovaLifeStyle.com.
Safe Harbor Statement
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Nova's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Nova's filings with the Securities and Exchange Commission.
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SOURCE Nova LifeStyle, Inc.