MIAMI, May 9, 2019 /PRNewswire/ -- Cool Holdings,
Inc. (NASDAQ: AWSM) ("Cool Holdings" or the "Company") today
announced that it has entered into a definitive agreement to
purchase all of the outstanding capital stock of Simply Mac, Inc.
("Simply Mac") from its parent company GameStop Corp. (NYSE: GME)
("GameStop"). Simply Mac, based in Salt Lake City, Utah, is the largest Apple
Premier Partner in the United
States, and operates 43 stores in 18 states. Consideration
for the purchase will be based in part on the value of inventories
and other working capital at the date of closing. The
transaction is expected to close by early August, 2019.
"This transaction enables us to advance our growth strategy
in the Americas as we move aggressively to reach our goal of 200
stores," said Mauricio Diaz, CEO and
executive chairman of Cool Holdings' board of directors.
"Upon closing, we will have 59 stores with 46 in the U.S., 6 in
Argentina and 7 in the
Dominican Republic, and a clear
focus on North America, including
potential opportunities in Canada. We are excited to work
with the Simply Mac team, because we each bring synergistic
strengths to the table that we believe will improve the operating
efficiency and profitability of the combined company. We
believe our direct relationships with third-party accessory
manufacturers can help strengthen Simply Mac's product offerings
and gross margins. Simply Mac's focus on Apple authorized
service and smaller market locations could help us further expand
our U.S. presence and improve our existing store efficiencies and
product-services mix."
No financial advisors were involved in this transaction from
either party. Dorsey & Whitney LLP is acting as legal
counsel to Cool Holdings and Holland & Hart LLP is acting as legal
counsel to GameStop.
About Cool Holdings, Inc.
Cool Holdings is a Miami-based
company focused on premium retail brands. It is currently
comprised of OneClick®, a chain of retail stores and an
authorized reseller under the Apple® Premier Partner,
APR (Apple® Premium Reseller) and AAR MB
(Apple® Authorized Reseller Mono-Brand) programs and
Cooltech Distribution, an authorized distributor to the
OneClick® stores and other resellers of
Apple® products and other high-profile consumer
electronic brands. Additional information can be found on its
website at www.coolholdings.com.
Forward-looking and cautionary statements
Forward-looking statements in this press release and all other
statements that are not historical facts are made under the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These statements, including those related to synergies
with Simply Mac, increases in sales, gross margin and
profitability, expansion of our stores in various geographic
regions, and continuation of our license agreements with
Apple®, involve factors, risks, and uncertainties that
may cause actual results in future periods to differ materially
from such statements. There are a number of factors that could
cause actual events to differ materially from those indicated by
such forward-looking statements, including actions by third
parties, such as Apple®. These factors include, but are
not limited to, risks arising from prevailing market conditions and
the impact of general economic industry or political conditions in
the United States or globally. A
list and description of these and other risk factors can be found
in the Company's most recent Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K, which can be
reviewed at www.sec.gov. These forward-looking statements
speak only as of the date of this release and we undertake no
obligation to publicly update any forward-looking statements to
reflect new information, events or circumstances after the date of
this release.
Apple® is the registered trademark of Apple Inc.
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SOURCE Cool Holdings, Inc.