DEERFIELD Ill. Cosi Inc., parent company to the 145-unit Cosi sandwich and salad chain, completed last week a shareholder rights offering that will raise about $5 million.
Cosi said the rights offering, which it announced in September, expired on Jan. 6, and that preliminary results showed it was over-subscribed. Cosi will issue 10 million shares to stockholders that exercised their privileges. Executive officers and outside directors for the Deerfield-based company also are expected to purchase about 286,173 shares in a separate private placement.
“Given the current state of the economy, we feel it is important to shore up our financial resources and provide some resources to continue to improve our product offering and broaden our customer reach,” said Jim Hyatt, chief executive at Cosi. “The proceeds from this offering will assist us in moving forward on those objectives.”
According to terms of the offering, Cosi shareholders were given one-to-one subscription rights to acquire 0.2447 shares of common stock at a subscription price of 50 cents per full share. Cosi shares have traded between 16 cents and $1.21 per share during the past 52 weeks. Shares closed at 71 cents per share on Friday.