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Cruzan International, Inc. (AMEX:RUM) (the "Company"),
producer and distributor of the Cruzan line of rums from the Virgin
Islands and a leading distiller of rum and brandy, and importer and
marketer of premium branded spirits, announced today that the exercise
period for the Company's rights offering expired as of 5:00 p.m.
Eastern Time on Tuesday, June 21, 2005. The fully subscribed offering
resulted in the issuance of 408,787 additional shares of common stock
and gross proceeds to the Company of approximately $5.686 million,
before deducting fees and expenses. The Company anticipates using the
net proceeds from the rights offering to pay down a portion of its
bank credit facility.
Based on preliminary calculations, 400,055 shares (of which 1,510
are guaranteed delivery) were subscribed for in the basic subscription
rights portion of the rights offering, representing approximately
97.9% of the total available for subscription. The demand for shares
in the oversubscription portion of the rights offering was
approximately 657,146 shares (of which 31,000 are guaranteed
delivery), substantially exceeding the approximately 8,732 shares
remaining available for oversubscription. Thus, the number of shares
each oversubscribing rightsholder will receive is subject to proration
in accordance with the rights offering materials.
The Company will deliver to subscribing rightsholders certificates
representing the shares of Company common stock purchased in the
rights offering as soon as practicable after all pro rata allocations
and adjustments have been completed. However, the Company will not be
able to begin calculations for any oversubscription pro rata
allocations and adjustments until three days after the expiration time
of the rights offering, which is the latest date for rightsholders to
deliver the rights exercise notice according to the guaranteed
delivery procedures.
Rightsholders who exercised their oversubscription rights and are
allocated less than all of the shares for which they wished to
subscribe will receive their excess payment by mail, without interest
or deduction, as soon as practicable after all pro rata allocations
and adjustments have been completed.
Following consummation of the rights offering, the Company will
have 6,747,306 shares of common stock outstanding.
About the Company
Cruzan International, Inc. is a major supplier of rum, brandy and
wine to the beverage alcohol industry. The Company also produces
ultra-premium single-barrel aged rums and tropical rums, vinegar and
other alcohol-related products.
Statements contained in this press release, other than historical
facts, are "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
and Exchange Act of 1934. The Company intends that such
forward-looking statements shall be subject to the safe harbors
created thereby. These statements involve various risks and
uncertainties, including without limitation those contained in the
section entitled "Risks that May Affect Future Results" in Item 7,
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in the Company's Annual Report on Form 10-K for
the fiscal year ended September 30, 2004. As a result, future results
may differ materially from the expected results represented by the
forward looking-statements contained in this press release.