By Devika Patel
Knoxville, Tenn., May 30 - Edgewater Foods International, Inc. plans to raise $2 million in a private placement of series D convertible preferred stock, according to an 8-K filed Friday with the Securities and Exchange Commission. The company may sell an additional $2 million of the preferreds.
The company arranged to sell the convertible preferreds on May 29. Settlement of the initial $1.5 million tranche is expected June 3. The second tranche will settle within 90 days after the first closing, provided the company hires a chief operating officer who is acceptable to the investor.
Each preferred, priced at $40.00, is convertible into common shares at an initial conversion price of $0.80.
Proceeds will be used for supplies, processing plant upgrades, working capital and general corporate purposes.
Based in Gaithersburg, Md., Edgewater is an aquaculture and marine hatchery.
| Issuer: | Edgewater Foods International, Inc.
|
| Issue: | Series D convertible preferred stock
|
| Amount: | $2 million
|
| Shares: | 50,000
|
| Price: | $40.00
|
| Conversion price: | $0.80
|
| Warrants: | No
|
| Pricing date: | May 29
|
| Settlement date: | June 3 (for $1.5 million)
|
| Stock symbol: | OTCBB: EDWT
|
| Stock price: | $1.45 at close May 29
|
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