Kidpik Corp. (NASDAQ: PIK), a leading online subscription-based children’s apparel company, has merged with Nina Footwear Corp., a renowned brand in women’s and children’s dress shoes and accessories.
The merger, which is structured as an all-stock transaction, has been unanimously approved by the Boards of Directors of both companies.
The newly formed entity will be known as Nina Holdings Corp., with Nina Footwear stockholders set to own 80% of Kidpik’s outstanding common stock upon the merger’s completion.
Ezra Dabah, the CEO and majority stockholder of Kidpik, who also helms Nina Footwear, will continue to play a pivotal role in the combined company, controlling approximately 76.8% of the voting shares alongside his family.
The strategic move is expected to bolster Kidpik’s financial performance, with anticipated increases in revenue, cash flow, and stockholder value.
Mr. Dabah expressed his enthusiasm for the merger, noting its alignment with his late father-in-law’s vision and the potential for growth through various initiatives, including international expansion and brand revitalization.
A key consideration for the merger’s approval was the preservation of Kidpik’s significant net operating loss carryforwards, estimated at around $38 million, which are expected to remain intact post-merger.
The transaction, structured as a reverse subsidiary merger, is intended to be a tax-free reorganization, with no anticipated changes to Kidpik’s leadership team. Upon completion, Nina Holdings Corp. will adopt the new ticker symbol “NINA” on NASDAQ.