Auri Footwear is about to be a publicly traded company.
The fashion footwear firm has entered into an agreement to be acquired by publicly listed Wellstone Filter Sciences Inc. via a reverse merger. Wellstone had, in effect, been a shell company for several years while maintaining its compliance with SEC rules and regulations.
“The management of Wellstone Filter Sciences has been looking for about three years for a company to take them over,” a Wellstone representative told Footwear News. “Auri wanted to go public and was looking for a vehicle to [do so].”
Upon completion of the deal, Wellstone will be renamed Auri Inc. and will be traded on the over-the-counter market. A transaction price was not disclosed.
For his part, Auri’s CEO, Ori Rosenbaum, told Footwear News the transaction will enable the firm to continue to move forward strategically. “We’ll be able to fund our growth the right way,” he said. “In this economy, which I feel is on the rebound, being capitalized is critical to being able to grow how we would like to. As we raise more funds, we’ll be able to grow that much faster.”
Rosenbaum declined to state how much the company intended to raise or how that money would be used, but said the company would make an announcement in the coming days.
Founded in 2007 and headquartered in Laguna Beach, California, Auri Footwear’s product lines range from sport and casual, to dress and fashion footwear. The brand is currently sold at better fashion and footwear retailers and specialty department stores throughout the U.S.