By Devika Patel
Knoxville, Tenn., Oct. 28 - Air Industries Group, Inc. said it raised another $240,000 in a private placement of junior subordinated notes and series B convertible preferred stock, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The company took in $2.28 million in the first tranche between Sept. 22 and Oct. 6.
The $2.52 million in notes mature on May 31, 2010 or when the company completes a financing for at least $10 million.
Interest will be payable at monthly at a rate of 1% per month.
The investors also received 178,416 preferred shares in the first tranche and 19,200 preferreds in this one.
The preferreds are convertible into common shares with a conversion price equal to the average VWAP for the 20 consecutive trading days prior to the original issue date. They pay 7% in dividends.
Taglich Brothers, Inc. was the agent.
Proceeds will be used to pay accounts payable and as working capital.
Bay Shore, N.Y.-based Air Industries is an aerospace and defense company.
| Issuer: | Air Industries Group, Inc.
|
| Issue: | Junior subordinated notes, series B convertible preferred shares
|
| Amount: | $2.52 million
|
| Maturity: | May 31, 2010
|
| Coupon: | 1% per month
|
| Price: | Par
|
| Yield: | 1% per month
|
| Warrants: | No
|
| Agent: | Taglich Brothers, Inc.
|
| Settlement date: | Oct. 6 (for $2.28 million), Oct. 28 (for $240,000)
|
| Stock symbol: | OTCBB: AIRI
|
| Stock price: | $0.06 at close Oct. 6
|
|
|
| Preferreds
|
| Shares: | 197,616
|
| Dividends: | 7%
|
| Conversion price: | Average VWAP for the 20 consecutive trading days prior to the original issue date
|
© 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.
