UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 7, 2011
DREAMS, INC.
(Exact name of registrant as specified in its charter)
| Utah | 001-33405 | 87-0368170 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||
| 2 South University Drive, Plantation, Florida | 33324 | |||
| (Address of principal executive offices) | (Zip Code) | |||
Registrant’s telephone number, including area code: (954) 377-0002
Registrant’s facsimile number, including area code: (954) 475-8785
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 1.01 | Entry into a Material Definitive Agreement |
On July 7, 2011, Dreams, Inc. (the “Company”) and its subsidiaries (collectively the “Debtors”) have been approved for an immediate increase in the amount of their credit facility with Regions Bank from $20 million to $25 million, and, effective October 1, 2011, an additional increase to $27.5 million. In connection with the modification the interest rate under the facility has decreased from LIBOR plus 3.0% to LIBOR plus 2.5% per annum.
A copy of the press release announcing the closing of the facility is attached hereto as an Exhibit.
| ITEM 9.01 | Financial Statements and Exhibits |
(d) Exhibits
| 99.1 | Press Release dated July 11, 2011 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: July 11, 2011 | DREAMS, INC. | |||
| By: | /s/ Ross Tannenbaum | |||
| Ross Tannenbaum | ||||
| Chief Executive Officer | ||||
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Exhibit 99.1
Dreams Expands Regions Bank Credit Facility to $27.5 Million
Additional Capitalto Fuel Company’s Record Growth in 2011
PLANTATION, FL., July 11, 2011: Dreams, Inc. (NYSE Amex: DRJ), a technology driven, multi-channel retailer focused on the sports licensed products industry, has been approved for an expansion of its credit facility with Regions Bank for $25 million effective immediately, and up to $27.5 million on October 1, 2011. This represents a $7.5 million increase since Dreams named Regions Bank as its new senior lender in July 2010.
“Regions’ banking group has been a great partner for us,” stated Ross Tannenbaum, Dreams’ president & CEO. “They have been very supportive of our corporate initiatives, and have now demonstrated this support with a substantial increase to our working capital line. The additional funding will permit our business models to remain aggressive, which includes our goal of generating more than $140 million in consolidated revenues in 2011.”
About Dreams, Inc.
Dreams, Inc. (NYSE Amex: DRJ) is a technology driven, multi-channel retailer focused on the sports licensed products industry. For more information, please visit www.DreamsCorp.com.
Forward Looking Statements
Statements contained in this press release, which are not historical facts, are forward-looking statements. The forward-looking statements in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements are indicated by words or phrases such as “anticipates,” “projects,” “management believes,” “Dreams believes,” “intends,” “expects,” and similar words or phrases. Such factors include, among others, the following: competition; seasonality; success of operating initiatives; new product development and introduction schedules; acceptance of new product offerings; franchise sales; advertising and promotional efforts; adverse publicity; expansion of the franchise chain; availability, locations and terms of sites for franchise development; changes in business strategy or development plans; availability and terms of capital including the continuing availability of our credit facility with Regions Bank or a similar facility with another financial institution; labor and employee benefit costs; changes in government regulations; and other factors particular to the company.
Company Contact:
David M. Greene
Senior Vice President
Tel 954-377-0002
dgreene@dreamscorp.com
Investor Relations:
Liolios Group, Inc.
Scott Liolios or Cody Slach
Tel 949-574-3860
info@liolios.com