New York, May 24 - Global ePoint, Inc. said it completed a $1.5 million private placement of series B convertible preferred stock.
The City of Industry, Calif., maker of digital video surveillance systems said it sold 15,000 preferred shares to existing institutional investors, Mercator Momentum Fund, LP, Mercator Momentum Fund III, LP and Monarch Pointe Fund, Ltd., all three of them funds managed by MAG Capital, LLC.
The preferreds convert into common stock at a price of $2.80 per share.
The company has the right to force conversion if its stock trades above $3.75 for 20 days, as long as the conversion will not result in the holder owning more than 9.99% of the stock.
Investors also receive warrants to buy 267,857 shares at a price of $3.50.
Global ePoint will use proceeds for potential acquisitions, working capital and other general corporate purposes.
The company will need a further $5 million of financing this year in addition to proceeds from the sale of the preferreds and cash on hand, according to a 10QSB filing with the Securities and Exchange Commission on Monday.
| Issuer: | Global ePoint, Inc.
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| Issue: | Series B convertible preferred stock
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| Amount: | $1.5 million
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| Shares: | 1,500
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| Price: | $1,000
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| Conversion price: | $2.80
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| Conversion ratio: | 535,714 shares
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| Forced conversion: | If stock trades above $3.75 for 20 days
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| Warrants: | For 267,857 shares
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| Warrant strike price: | $3.50
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| Investor: | MAG Capital, LLC funds Mercator Momentum Fund, LP, Mercator Momentum Fund III, LP and Monarch Pointe Fund, Ltd.
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| Settlement date: | May 20
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| Stock price: | $2.66 at close May 20
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