Delta Apparel filed a form S-3, a universal shelf registration statement, with the Securities and Exchange Commission (SEC) last week that would allow it to sell up to $100 million in various securities over the next three years. The securities may consist of common stock, preferred stock, debt securities, warrants or units consisting of any of those.
The knit apparel manufacturer said the filing would allow it to access capital markets to fund future business opportunities as needed, though there are currently no specific plans for issuing securities.
“We believe the universal shelf registration statement provides us optimal financial flexibility for general corporate purposes,” said CEO Robert Humphreys in a statement. “In addition, it streamlines the process in the event we identify strategic opportunities that may require additional capital.”
As of Oct. 31, the company reported 7,873,848 outstanding shares of common stock. In its most recent quarterly filings, Delta Apparel also reported a dip in sales for the three-month transition period ended Sept. 28. Net sales for the period dropped to $122.6 million from $130.1 million in the same period of the previous year. A decline in the retail sales of the company’s undecorated T-shirts along with soft sales in its Soffe sportswear brand were chiefly responsible for the dip.
Other brands include Salt Life, The Cotton Exchange and American Threads.
