By Sheri Kasprzak
Atlanta, June 3 - Global ePoint, Inc. said it has closed a private placement for $3.5 million.
The company sold 1,250 shares of series C convertible preferred stock at $2,800 each to existing institutional investors.
The preferreds pay dividends at 6% annually, payable semiannually beginning Dec. 31, 2005. The dividends may be paid in cash or stock.
The preferreds are convertible into a total of 1.25 million common shares at $2.80 each.
Global ePoint must redeem the preferreds starting March 2006 at a rate of 1/30th of the outstanding shares per month at a price equal to the price of the shares being redeemed plus dividends. Global ePoint may also redeem the preferreds at 105% of the stated value, or $2.94 each.
The company may force the conversion of the preferreds any time its stock trades above $3.75 each for 15 consecutive trading days as long as the conversion will not cause the holder to possess more than 9.99% of the company's common stock.
The investors also received warrants for 625,000 shares, exercisable at $3.50 each.
Based in City of Industry, Calif., Global ePoint makes digital surveillance products for the law enforcement, military, aviation and commercial markets. The proceeds will be used for potential acquisitions, working capital and general corporate purposes.
| Issuer: | Global ePoint, Inc.
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| Issue: | Series C convertible preferred stock
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| Amount: | $3.5 million
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| Shares: | 1,250
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| Price: | $2,800
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| Dividends: | 6%
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| Conversion price: | $2.80
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| Conversion ratio: | Into 1.25 million common shares
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| Call: | May force conversion if stock trades above $3.75 each for 15 consecutive trading days. May redeem preferreds at 105% of stated value, or $2.94 each.
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| Warrants: | For 625,000 shares
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| Warrant strike price: | $3.50
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| Settlement date: | June 2
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| Stock price: | $3.09 at close June 2
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