Australian retailer Sam’s Jewelers to sell $150 million in shares
Sam’s has bought $50 million in the Australian online jewelry retailer’s stock, which will allow it to reduce its debt and raise funds for its operations.
Sam’s said it expects to raise an additional $150m to fund its operations and expand its portfolio.
The company’s shares rose more than 10 per cent to $8.68 on the Australian Securities Exchange, or AUST.
Sam has had a tough time of late, but the company has managed to remain afloat despite some disappointing earnings in recent months.
The shares fell 7 per cent on the Sydney Stock Exchange on Tuesday, after a lower than expected quarterly profit.
The stock rose again to $9.95 on the Melbourne Stock Exchange, but fell further on the day.
Sam said it had recently started buying up its shares.
“We’re currently engaged in a process that we expect to close by the end of the year, but we’re not quite there yet,” Sam’s Chief Financial Officer Mark Gies said.
“In the meantime, we have the funds available to continue to grow the business, so we’re continuing to be supportive of the company and supporting its efforts.”
Sam’s shares are trading at $8 a share, up from $6.30 on Monday.
