Kidpik and Nina Footwear announce merger
Kidpik, a subscription-based online children’s clothing company listed on the Nasdaq stock exchange in New York, and Nina Footwear, a privately held company operating a brand specialising in women’s and children’s dress shoes, have agreed to merge.
Under the terms of the deal, Kidpik will acquire Nina Footwear through a reverse subsidiary merger, the combined company will be renamed “Nina Holding Corp”, and the symbol will change to “NINA”. Stockholders of Nina Footwear will own 80% of Kidpik’s common stock when the merger closes. There are no expected changes to Kidpik’s officers or directors because of the transaction.
The online children’s retailer is controlled by Ezra Dabah, the Chief Executive Officer, Chairman and majority shareholder (67% beneficial owner), who is also the Chief Executive Officer of Nina Footwear. Dabah and his children own approximately 79.3% of Nina Footwear, and Dabah and his extended family own 100% of Nina Footwear. Dabah, his children, and his wife are expected to continue to control approximately 76.8% of the voting shares of the combined company following the completion of the merger.
According to Dabah, the transaction is expected to increase the stockholder value, revenue, cash flow and prospects of Kidpik, while making Nina a public company.
“As a team, we will refocus our attention on growing Nina through brand and category extensions, international expansion, the resurrection of the Delman shoe brand, and mining our extensive Nina Footwear archive for additional growth, which we believe presents great value. I believe the retention of the net operating loss carryforwards is of tremendous value to our shareholders in entering into the merger”, he concluded.
About Nina Footwear
More than 70 years ago, Nina Footwear was founded by Stanley and Mike Silverstein in a factory on Prince Street in SoHo, making premium women’s clogs. Today, the Nina brand encompasses premium women’s and children’s footwear and accessories for the “modern woman who enjoys glamorous footwear, fashionable design and exceptional quality at an accessible price”.
Image Credits: theiconic.com.au