Company sells 3% notes along with five-year warrants to investor group
By Devika Patel
Knoxville, Tenn., Jan. 4 - Boomerang Systems, Inc. arranged a private placement of 3% senior unsecured notes due Jan. 1, 2012, on Dec. 29, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The company will raise up to $3.25 million through the sale.
The investors also will receive one five-year warrant for each dollar invested. The warrants are exercisable at $0.30, a 50% discount to the Dec. 22 closing share price of $0.60.
The nine investors include the company's chief executive officer Mark Patterson, who will invest up to $500,000; Lake Isle Corp., which will invest up to $750,000; HSK Funding, investing up to $250,000; and James Mulvihill, who is investing up to $250,000.
The Morristown, N.J., company makes automated racking and retrieval systems for automobile parking and self-storage units.
| Issuer: | Boomerang Systems, Inc.
|
| Issue: | Senior unsecured notes
|
| Amount: | $3.25 million
|
| Maturity: | Jan. 1, 2012
|
| Coupon: | 3%
|
| Warrants: | One for each dollar invested (up to 3.25 million)
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.30
|
| Investors: | Mark Patterson (for up to $500,000); Lake Isle Corp. (for up to $750,000); HSK Funding (for up to $250,000); and James Mulvihill (for up to $250,000)
|
| Pricing date: | Dec. 29
|
| Stock symbol: | Pink Sheets: BMER
|
| Stock price: | $0.60 at close Dec. 30
|
| Market capitalization: | $84.18 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
