New York, June 24 - Digital Recorders, Inc. said it sold 386 shares of series G convertible preferred stock in two separate transactions for $1.9 million.
The preferreds are convertible at $2.21 per share, the market price of the company's stock when the deal was priced.
They pay dividends in kind at 8%.
Digital Recorders also issued warrants for 275,714 shares at $2.21 per share, exercisable for five years.
The buyers were Dolphin Offshore Partners, LP and John D. Higgins, Sr., a private investor and director of the company.
The Dallas digital communications systems company will use proceeds to repay a $1.6 million note related to its acquisition of Mobitec AB in 2001 and for general corporate purposes.
| Issuer: | Digital Recorders, Inc.
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| Issue: | Series G convertible preferred stock
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| Amount: | $1.9 million
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| Dividend: | 8%, PIK
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| Conversion price: | $2.21
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| Call: | After five years
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| Warrants: | For 275,714 shares
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| Warrant strike price: | $2.21
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| Warrant term: | Five years
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| Investors: | Dolphin Offshore Partners, LP, John D. Higgins, Sr.
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| Announcement date: | June 24
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| Stock price: | $2.20 at close, June 24
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