By Sheri Kasprzak
New York, June 26 - AHPC Holdings, Inc. wrapped a $3 million private placement of series B convertible preferred stock.
The company sold 30,000 shares of the preferred stock to Mercator Momentum Fund III, LP; Monarch Pointe Fund, Ltd.; and M.A.G. Capital, LLC.
The preferreds pay annual dividends at the higher of 9% or Prime rate plus 100 basis points with a 12% ceiling. The preferreds are convertible at $1.60 each.
The investors received warrants for 1.95 million shares. Of the warrants, 975,000 are exercisable at $1.75 each and 975,000 are exercisable at $1.85 each. The warrants expire June 20, 2011.
Flagstone Securities was the placement agent.
The offering will put the company back in compliance with Nasdaq Stock Market, Inc. listing rules. The company has been in violation of those listing rules since April when it failed to satisfy the $2.5 million stockholders' equity requirement.
Based in Glendale Heights, Ill., AHPC markets disposable medical examination, foodservice and retail gloves.
| Issuer: | AHPC Holdings, Inc.
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| Issue: | Series B convertible preferreds
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| Amount: | $3 million
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| Shares: | 30,000
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| Price: | $100.00
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| Dividends: | The higher of 9% or Prime rate plus 100 basis points, 12% ceiling
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| Conversion price: | $1.60
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| Warrants: | For 1.95 million shares
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| Warrant expiration: | June 20, 2011
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| Warrant strike price: | $1.75 for 975,000 warrants; $1.85 for 975,000 warrants
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| Investors: | Mercator Momentum Fund III, LP; Monarch Pointe Fund, Ltd.; and M.A.G. Capital, LLC
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| Placement agent: | Flagstone Securities
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| Settlement date: | June 20
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| Stock symbol: | Nasdaq: GLOV
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| Stock price: | $1.80 at close June 20
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