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
INNOVO GROUP INC.
(Exact name of registrant as specified in charter)
Delaware 0-18926 11-2928178
(State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
27 North Main Street, Springfield, Tennessee 37172
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (615) 384-0100
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Item 7. Financial Statements and Exhibits
(c) The following Exhibits are filed with or incorporated by reference in this
Report as indicated below:
99.1 Press Release dated October 20, 1998.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
INNOVO GROUP INC.
(Registrant)
By: /s/ L. E. Smith
L. E. Smith Chairman and
Chief Executive Officer
Date: October 20, 1998
Press Release dated: October 20, 1998
NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
INNOVO RECEIVES $1,798,000 FOR
SALE OF STOCK AT $2.00 PER SHARE
SPRINGFIELD, TENNESSEE, October 20, 1998 - INNOVO GROUP INC. (NASDAQSymbol:
INNO), a manufacturer and supplier to national and international retailers,
including Wal-Mart, K-Mart, Michael's, Hobby Lobby, Dollar General, Goody's and
Fabri-Center, announced today that the company has received $1,798,000 from the
sale of 899,000 shares of common stock to FHD-II, LLC at $2 per share.
The FHD-II, LLC entity is owned by Board members Sam Furrow and Robert Talbott.
Subsequent to this transaction, FHD-II, LLC owns 19.9% of Innovo common stock
with ownership by all Board members collectively representing 41.8% of the
common stock outstanding. Furthermore, the shares purchased by FHD-II, LLC
were not discounted to the market, they are restricted by the 144 regulations
and can only be resold on a prorata basis over a 24 month period.
L.E. Smith, CEO of Innovo, stated that "this cash infusion will give Innovo the
opportunity to further implement the company's long term business plan for
increasing profitability. The money will be used to pay down existing
outstanding debt, to decrease accounts payable and accrued expenses.
Furthermore, the money will provide the company with financial resources to
develop new markets for the company's products. This capital infusion should
position the company to generate the revenues and profits necessary to further
shareholder value."
Innovo Group Inc. designs, markets, manufacturers and distributes fashion and
sports licensed nylon and canvas products for the multi-billion dollar crafts
industry and retail sector in the United States and Europe. Under licensing
agreements, the Company's sports lines feature the designs of the NBA, NFL,
Major League Baseball, NHL, numerous collegiate teams, Walt Disney and Warner
Brothers. Innovo also has certain exclusive and non-exclusive manufacturing
and distribution rights for NASCAR licensed products.
This press release may contain forward-looking statements made pursuant to the
"safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that such forward-looking statements involve
risks and uncertainties, including, without limitation, continued acceptance
of the Company's product, product demand, competition, capital adequacies,
access to additional capital, if required, and other risks and uncertainties
detailed from time to time in the Company's periodic reports including Quarterly
Reports on Form 10-Q and Annual Reports on Form 10-K.
Listed: NASDAQ SmallCap Exchange
Trading Symbol: INNO
Contact: Jay Furrow, V.P. of Corporate Development, (615)384-0100
