CONN’s, INC. UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTSPro Forma Combined Financial Statements • March 4th, 2024 • Conns Inc • Retail-radio, tv & consumer electronics stores
On December 18, 2023, Conn's entered into an Investment Agreement, among Conn’s Inc. (“Conn’s”, “Company” or “Management”), Franchise Group Newco BHF, LLC (“Newco BHF”), W.S. Badcock LLC (“Badcock”), Freedom VCM Interco Holdings, Inc. (“FVCM” or “Freedom VCM”) and Franchise Group, Inc. (“FGI”). Pursuant to the Investment Agreement, Newco BHF contributed to Conn's all of the issued and outstanding equity interests of Badcock and FVCM agreed to contribute residual interests in certain receivables currently held by B. Riley Receivables II, LLC (“BRR2”) to Badcock upon the satisfaction of certain indebtedness of BRR2 in the future. In exchange for the contributions, Conn's issued 1,000,000 shares of Preferred Stock to Newco BHF and FVCM. The Preferred Stock, subject to the terms set forth in the Certificate of Designation, is convertible into an aggregate of approximately 24,500,000 shares of Non-Voting Common Stock, which represents 49.99% of the issued and outstanding shares of common st
