The parent company of Mount Snow Resort in West Dover, Peak Resorts, Inc. (Nasdaq:SKIS), has announced that it has reached an agreement to sell $20 million of its Series A cumulative convertible preferred stock and warrants to purchase common stock to CAP 1 LLC, a family client of Summer Road LLC. The Company expects to use the proceeds from this offering for working capital and general corporate purposes and for the execution of its strategy for future growth, including expansion through acquisition.
As previously reported by Peak Resorts, its current cash position is restrained due to delays in the release of funds raised pursuant to the EB-5 immigrant investor program, and the negative effects that unseasonably warm weather had on revenues during the 2015/2016 ski season. The Company believes that this investment will provide it with increased flexibility to meet short- and long-term liquidity and maintain flexibility for future funding of ongoing operations, growth and strategic investments.
“We are pleased that our long-time shareholder, Summer Road, has decided to make this additional significant investment in our company,” said Tim Boyd, president and chief executive officer of Peak Resorts, Inc. “It is a strong validation of the quality of our assets and the opportunity in front of us. This investment will significantly strengthen our balance sheet, today and into the future.”
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