By Sheri Kasprzak
New York, Aug. 3 - WorldGate Communications Inc. said it has wrapped a private placement for $17.5 million.
The company sold 4,666,667 shares at $3.75 each to a group of institutional investors led by funds managed by Satellite Asset Management LP.
The investors also received warrants for 1,633,333 shares, exercisable at $5.00 each for five years. Also, the investors were granted an additional investment right for 1,554,000 additional shares, exercisable at $4.12 each.
SG Cowen & Co., LLC was the placement agent.
Trevose, Pa.-based WorldGate develops wireless phone and video phone products. The proceeds will be used for research and development and for working capital.
Issuer: | WorldGate Communications Inc.
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Issue: | Stock
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Amount: | $17.5 million
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Shares: | 4,666,667
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Price: | $3.75
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Warrants: | For 1,633,333 shares
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Warrant expiration: | Five years
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Warrant strike price: | $5.00
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Investors: | Satellite Asset Management LP (lead)
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Placement agent: | SG Cowen & Co., LLC
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Settlement date: | Aug. 3
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Stock price: | $4.25 at close Aug. 3
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