LOS ANGELES, May 28, 2015 /PRNewswire/ -- Nova LifeStyle, Inc.
(NASDAQ: NVFY), a U.S.-based fast-growing, innovative designer,
manufacturer and distributor of modern LifeStyle furniture,
announced today that it has entered into definitive agreements,
pursuant to which Nova LifeStyle will offer to institutional
investors, in a registered direct offering, an aggregate of
2,970,508 shares of common stock. Two million shares of
common stock will be sold to the investors at a negotiated purchase
price of $2.00 per share. A
total of 970,508 shares of registered common stock will also be
issued to holders of Nova LifeStyle's 2014 Series A and Series C
Warrants in exchange for the termination and surrender of said
warrants.
In a concurrent private placement, Nova LifeStyle is also
selling to investors a warrant to purchase one share of common
stock for each share purchased for cash in the offering.
These warrants will be exercisable beginning on the six-month
anniversary of the date of issuance at an exercise price of
$2.71 per share and will terminate on
the five-year anniversary of issuance.
Gross proceeds of the offering, before deducting placement agent
fees and other estimated offering expenses payable by Nova
LifeStyle, are expected to be $4,000,000. The net proceeds from this offering
will be used for general working capital purposes.
The closing of the offering is expected to occur on or about
June 1, 2015, subject to the
satisfaction of customary closing conditions.
Maxim Group LLC is acting as the exclusive placement agent for
the offering.
The shares of common stock are being offered by Nova LifeStyle
pursuant to an effective shelf registration statement on Form S-3
(File No. 333-193746), which was declared effective on
March 7, 2014 by the Securities and
Exchange Commission (SEC). The shares may be offered only by means
of a prospectus, including a prospectus supplement, forming a part
of the effective registration statement. A prospectus supplement
relating to the offering of the shares will be filed with the SEC
and will be available on the SEC's website at http://www.sec.gov.
The warrants are being offered in a private placement under
Section 4(a)(2) under the Securities Act of 1933 (the "Securities
Act") and have not been registered under the Securities Act.
Pursuant to the Securities Purchase Agreement, the Company has
agreed to file a registration statement with the SEC covering the
resale of the shares of common stock issuable upon exercise of the
warrants.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy these securities, nor shall there
be any sale of these securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
jurisdiction.
About Nova LifeStyle
Nova LifeStyle, Inc., a NASDAQ Global Markets Exchange listed
company headquartered in California, is a fast growing, innovative
designer, manufacturer and distributor 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 or download the NVFY IRapp from the investor
page.
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.
Investor Contact:
KCSA Strategic Communication
Julie Silber
Tel: (310) 766-9760
jsilber@kcsa.com
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SOURCE Nova LifeStyle, Inc.