NEW YORK — Crumbs Bake Shop, Inc., the nation’s largest specialty cupcake retailer, has agreed to sell 4,456,968 shares of its common stock at a price of $2.21 per share, resulting in gross proceeds to the company of $9,849,900. Crumbs said it plans to use the proceeds to fund new store growth, and to bolster general working capital in order to strengthen its financial condition.
“We are pleased with the support for Crumbs from the financial community, and are excited to have closed on this private placement,” said Julian R. Geiger, president and chief executive officer. “Clearly, we now have the desired additional capital to fund our new store growth strategy, and to strengthen our financial position. With our capital needs now met, we can execute our real estate strategy of opening up to 25 new in-line stores and kiosks in hand-picked super regional malls in 2013.”
The first Crumbs bake shop opened in March 2003 on the Upper West Side of Manhattan. Crumbs currently has 54 locations, including 35 locations in the New York Metro area, six locations on the West coast, five locations in Washington, D.C., one location in Virginia, five locations in Chicago, Illinois and two locations in Boston, Massachusetts.