Global Sports Announces $25 Million Private Placement with TMCT Ventures, Softbank Capital Partners and Softbank Capital Advisors Fund
Global Sports, Inc. (NASDAQ: GSPT), a leading developer and operator of e-commerce sporting goods businesses, today announced that TMCT Ventures (Times Mirror Chandler Trust), SOFTBANK Capital Partners and SOFTBANK Capital Advisors Fund have agreed to acquire common stock of Global Sports for a total of $25 million in cash at $8 per common share. The proceeds will be used for working capital, capital expenditures and general corporate purposes. In addition, the investors have the right to acquire up to an additional $15.6 million of common stock at $10 per common share.
Global Sports also announced today that it intends to withdraw the registration statement that was filed with the Securities and Exchange Commission on April 3, 2000 for a public offering of 5,000,000 shares of the companys common stock.
Michael Rubin, Chairman and CEO of Global Sports, stated, Given the recent volatility in the public markets, we believe it is prudent for the company to cancel our planned follow-on offering. At the same time, we are excited to announce the addition of TMCT Ventures as a value-added long-term strategic investment partner and the deepened commitment from SOFTBANK to our company.
Global Sports plans to report its results of operations for the first quarter of fiscal 2000, on May 4, 2000 after the close of trading.
About TMCT Ventures
TMCT Ventures (http://www.tmctventures.com) is a $550 million venture capital fund investing in the new leaders of American business. Formed in 1999, TMCT Ventures is the largest venture capital fund in Southern California. The fund’s investments focus on Internet businesses and infrastructure, business services, telecommunications, and other technology-oriented, high-growth industries.
About SOFTBANK Capital Partners
SOFTBANK Capital Partners (http://www.sbcap.com) is a $1.25 billion Internet venture investment group sponsored by SOFTBANK CORP. and led by partners Masayoshi Son, SOFTBANK CORP.‘s founder, president and CEO; Ronald Fisher, Chief Executive Officer of SOFTBANK Global Ventures; Charles R. Lax, a co-founder of SOFTBANK Technology Ventures; and Bill Burnham, former Credit Suisse First Boston Corp. e-commerce analyst.
About Global Sports
Global Sports, Inc. (http://www.globalsports.com) is a leading developer and operator of e-commerce sporting goods businesses. Global Sports develops and operates the e-commerce sporting goods businesses of sporting goods retailers, general merchandisers, Internet companies and media companies under exclusive long-term agreements. The company’s current partners include BlueLight.com (http://www.bluelight.com)—the exclusive e-commerce partner for Kmart, Broadband Sports (http://www.broadbandsports.com) and its AthletesDirect subsidiary (http://www.athletesdirect.com), Dunham’s Sports (http://www.dunhamssports.com), Healtheon/WebMD (http://store.webmd.com), MC Sports (http://www.mcsports.com), Oshman’s Sporting Goods (http://www.oshmans.com), Sport Chalet (http://www.sportchalet.com), The Athlete’s Foot (http://www.theathletesfoot.com), and The Sports Authority (http://www.thesportsauthority.com).
Contact:
Media Contact:
Dana Stein Grosser
Director of Corporate Communications
Global Sports, Inc.
(610) 491-7000
grosserd@globalsports.com
Investor Contact:
Jordan M. Copland
Executive Vice President and Chief Financial Officer
Global Sports, Inc.
(610) 491-7000
coplandj@globalsports.com
