Business
ISS Recommends OneSpaWorld Shareholders Vote “FOR” Proposed Equity Financing
OneSpaWorld Urges All Shareholders to Vote “FOR” Vital $75 Million Equity Financing at June 10 Annual Meeting Company Reiterates Going Concern Risk If Equity
About this update from Onespaworld Holdings Limited
[{"type":"text","content":"\nOneSpaWorld Urges All Shareholders to Vote “FOR” Vital $75 Million Equity Financing at June 10 Annual Meeting\n\n\nCompany Reiterates Going Concern Risk If Equity Financing Is Not Approved\n\n NASSAU, Bahamas--(BUSINESS WIRE)--\nOneSpaWorld Holdings Limited (NASDAQ: OSW), the pre-eminent global provider of health and wellness products and services on board cruise ships and in destination resorts around the world, today commented on a report by Institutional Shareholder Services Inc. (\"ISS\"), the leading independent proxy advisory firm, recommending that OSW shareholders vote “FOR” the previously announced $75 million equity financing at the Company's Annual Meeting of Shareholders on June 10.\n\n\n“We are pleased ISS recognizes that OSW’s equity financing is in the best interests of shareholders and is necessary to the Company’s ability to continue as a going concern,” said Leonard Fluxman, Executive Chairman. “This financing is required for OSW to fund its operations while its business is impaired due to the COVID-19 pandemic and to remain in compliance with our debt covenant as of June 30, 2020. We urge OSW shareholders to follow this independent recommendation and vote today in favor of Proposals 3 and 4, which also will enable us to quickly restart operations when our cruise line partners resume sailing, facilitate innovation in our service and product offerings and wellness experiences, and position us for long-term operation and growth.”\n\n\nISS notes in its report regarding the equity financing that: “there is a risk that other financing alternatives may not be readily available at this point, given limited time for due diligence or registering shares for a public issuance, existing lenders' purported inflexibility, and the ongoing risk of OSW's business environment. In consideration of the potential for continued losses in an uncertain environment, and in the absence of a prompt and superior alternative, cautionary support for this item is warranted at this time.”1\n\n\nOn April 30, 2020, OSW entered into a definitive agreement with Steiner Leisure Limited and its affiliates and other investors under which they will invest $75 million in common equity and warrants. The equity financing, which was unanimously approved by a Special Committee of the OSW Board of Directors, is subject to shareholder approval of the priv...