By Sheri Kasprzak
Atlanta, June 15 - Secured Services Inc. said it sold $7 million of convertible debentures in a private placement to a group of institutional and accredited investors led by Midsummer Investment Ltd.
The debentures mature on June 13, 2008, bear interest at 7.5% annually and are convertible into a total of 5,837,146 common shares.
The company has received $4 million of the proceeds so far, and the remainder will be received once Secured meets certain conditions.
The investors will also receive warrants equal to 40% of the shares available upon conversion, exercisable at $1.28 each for four years.
Merriman Curhan Ford & Co. was the placement agent.
The company also announced that it has completed its acquisition of Chameleon Communications Technology Inc.
Based in New York, Secured Services is a software company focused on identity and access-management security products.
| Issuer: | Secured Services Inc.
|
| Issue: | Convertible debentures
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| Amount: | $7 million
|
| Maturity: | June 13, 2008
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion ratio: | Into 5,837,146 common shares
|
| Warrants: | Equal to 40% of the shares issuable upon conversion
|
| Warrant expiration: | Four years
|
| Warrant strike price: | $1.28
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| Placement agent: | Merriman Curhan Ford & Co.
|
| Investors: | Midsummer Investment Ltd. (lead)
|
| Settlement date: | June 13
|
| Stock price: | $1.03 at close June 13
|
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