David Gallo’s Valinor Management LLC, upped its stake in dELiA*s Inc (NASDAQ:DLIA) to 14.38 million shares from 6.57 million shares held earlier. The stake amasses 18.7% of the company’s stock.
Moreover, according to the filing, Valinor Management will nominate Seth Cohen and one more individual to the board of directors of dELia*s Inc (NASDAQ:DLIA). Furthermore, Valinor Management has the right to nominate two members on the board of directors of dELia Inc, with due approval of the Chief Executive Officer of dELia for as long as permitted under NASDAQ Rule 5640. However, this individual should neither be an employee of Valinor Management nor should he be working with any of its affiliates. Valinor Management also has the right to vote as long as the abovementioned directors are on the board of dELia Inc., all eligible shares of Common Stock or Series B Preferred Stock Valinor Management beneficially owns for the election of the director nominated by Flatbush Watermill LLC at the meeting of dELia Inc at which such election will be considered, the fund said in the statement.
dELia*s, Inc. (NASDAQ:DLIA) is a $75.7 million, multi-channel retail company, which operates primarily under two brand names, marketing to young women and teenage girls.
Earlier this month, dELiA*s Inc, declared its financial results for the fourth quarter of fiscal year 2013. It recorded revenues of $35.4 million, down 34.2% from $53.7 million posted a year ago.
Over a week ago, the company signed an agreement for a $44.1 million private placement transaction. It has agreed to sell 199,834 shares of Series B convertible preferred stock for an aggregate purchase price of $20.0 million. It will also sell $24.1 million in principal amount of 7.25% secured convertible notes. Each share of preferred stock is convertible into 125 shares of the company’s common stock at a conversion price of $0.80.
David Gallo earned his BS in finance and accounting from The Wharton School at the University of Pennsylvania. Mr. Gallo received his MBA in general management from Harvard Business School, five years after acquiring his diploma. The name of the fund has been derived from the fictional location referred in the books of J.R.R. Tolkien, which is inhabited by immortal souls. The total portfolio value of the fund amounted to $3.03 billion in December 2013.
Some of the largest investments of the fund as at the end of the fourth quarter of 2013 involves Fleetcor Technologies Inc. (NYSE:FLT), in which Valinor Management owns 1.49 million shares, worth $175.07 million. The fund, also holds 6.06 million shares of Hertz Global Holdings Inc. (NYSE:HTZ), with a reported value of $173.46 million. The fund, holds significant stake in Popular Inc. (NASDAQ:BPOP). It holds 5.68 million shares of the company, which is equivalent to $163.24 million in value.
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