By Laura Lutz
Des Moines, Nov. 9 - CPC of America, Inc. launched a private placement of preferred stock in September but has not yet sold any of the preferreds, according to an 8-K filing with the Securities and Exchange Commission.
The placement consists of up to 2,025,316 shares of the company's series E preferred stock at $19.75 per share.
The preferreds bear a dividend of 10% per year. Each preferred share is convertible into one common share until Aug. 31, 2008. After that, the conversion price will be adjusted to the lower of $14.80 and 75% of the average closing price of the common stock for the 30 trading days before conversion, subject to a floor of $13.00.
The company expects to use the proceeds for clinical trials, regulatory compliance, manufacturing and marketing of its MedClose product and working capital.
CPC is a medical technology company based in Sarasota, Fla.
| Issuer: | CPC of America, Inc.
|
| Issue: | Series E preferred stock
|
| Amount: | $40 million
|
| Shares: | 2,025,316
|
| Price: | $19.75
|
| Dividends: | 10%
|
| Conversion price: | $14.80 until Aug. 31, 2008; then, lower of $14.80 and 75% of average closing price of stock for 30 trading days before conversion, subject to floor of $13.00
|
| Warrants: | No
|
| Pricing date: | September 2007
|
| Announcement date: | Nov. 9
|
| Stock symbol: | OTCBB: CPCF
|
| Stock price: | $8.17 at close Nov. 9
|
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