Mad Jack’s, a San Diego-based consumer electronics retail chain, expects a public offering that was initiated last week to generate $3 million in proceeds, according to Mad Jack’s Chairman and President Bruce Bart. The public offering is being reviewed by the state Department of Corporations, Bart said Monday.
Mad Jack’s, a closely held company that operates seven stores in San Diego County, expects to report $13.5 million in revenue for the fiscal year ended Sept. 30. Mad Jack’s would use proceeds of the public offering to expand its retail business outside San Diego and to bolster its presence in the electronics wholesale business, Bart said.
Mad Jack’s became a public company by combining its business with Cambridge Equity Corp., a Denver company that had traded in the over-the-counter market, Bart said. Mad Jack’s shareholders were issued 264-million shares of common stock in exchange for their outstanding closely held stock.
The deal completed last week will give Mad Jack’s access to $400,000 in cash that Cambridge Equity Corp. held. Mad Jack’s expects to eventually generate an additional $3 million through stock warrants held by Cambridge’s former shareholders.