Groupe Bikini Village inc.
TSX : GBV

Groupe Bikini Village inc.

August 17, 2010 15:11 ET

Groupe Bikini Village inc. Completes its Rights Offering and Concurrent Private Placement

SAINTE-JULIE, QUEBEC--(Marketwire - Aug. 17, 2010) - Groupe Bikini Village inc. (TSX:GBV) ("Groupe Bikini Village" or the "Company") today announced the completion of its previously-announced offering of rights (the "Offering") and concurrent private placement (the "Private Placement"). Under the Offering and the Private Placement, the Company issued a total of 71,218,178 common shares ("Shares") at a price of $0.03 each (the "Subscription Price"), for total gross proceeds of $2,1 millions.

As previously announced, Elmag Investments Inc. ("Elmag") agreed to subscribe for, at the Subscription Price, those Shares not otherwise subscribed for on the exercise of rights under the Offering (the "Stand-By Guarantee"). Before the Offering, Elmag held 14,561,080 Shares (8.67% of the outstanding Shares). Under the Offering, Elmag subscribed for an additional 3,640,270 additional Shares. Elmag acquired no Shares under the Stand-By Guarantee, all rights having been exercised under the Offering.

In addition, as previously disclosed, the Company extended to Elmag the opportunity to subscribe for Shares at a price of $0.03 each under the Private Placement, subject to Toronto Stock Exchange approval. Elmag has therefore subscribed for 29,298,650 Shares under the Private Placement.

As a result of the Offering and the Private Placement, Elmag subscribed for a total of 32,938,920 Shares and therefore holds a total of 47,500,000 Shares (19.88% of the outstanding Shares).

Elmag holds its securities solely for investment purposes. Its address is 3678 de la Montagne Street Montreal, Quebec H3G 2A8. The Offering was made through the Toronto Stock Exchange.

A copy of Elmag's report under National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues is available on SEDAR at www.sedar.com or by contacting Mr. Yves Simard, President and Chief Executive Officer at 450 449-1310 ext. 4797.

As a rights offering, the Offering was exempt from prospectus requirements under section 2.1 of National Instrument 45-106 – Prospectus and Registration Requirements ("NI 45-106"). The Private Placement was exempt from prospectus requirements under section 2.3 of NI 45-106, given that Elmag purchased as principal and is an accredited investor under the meaning of NI 45-106.

About Groupe Bikini Village

Groupe Bikini Village inc., serving Canadians for almost a quarter-century, is a leading swimwear retailer with a network of new and renovated boutiques across Eastern Canada. In its bright and inviting stores with comfortable change rooms and knowledgeable staff, Groupe Bikini Village helps its customers choose from among Canada's widest selection of swimsuits, beach accessories, and cruisewear, in the most popular brands the industry has to offer and in styles to suit every figure. The newest addition to its retail network, Lanaï, offers the most popular clothing brands for young girls in Brossard, Quebec. Headquartered in Sainte-Julie, Quebec, Groupe Bikini Village inc. operates 60 stores and employs approximately 500 people; its securities trade on the Toronto Stock Exchange under the stock symbol GBV. For more information about Groupe Bikini Village inc., please visit our website at www.bikinivillage.com.

Forward-looking statements

Forward-looking statements are included or incorporated by reference in this news release. Although the Company believes the expectations reflected in those forward-looking statements are based on reasonable assumptions, it can give no assurances that these expectations will be achieved. Such assumptions may prove incorrect. These factors and others are more fully discussed in the Company's filings with the Canadian securities regulatory authorities, including its annual information form for the financial year ended January 30, 2010 and available at www.sedar.com.

Contact Information

  • Groupe Bikini Village inc.
    Yves Simard
    President and Chief Executive Officer
    450-449-1310 ext. 4797
    ysimard@bikinivillage.com