By Devika Patel
Knoxville, Tenn., July 7 - Home Solutions of America Inc. pocketed $3 million from a private placement of series C-2 convertible preferred shares on July 3, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The company sold the preferreds at $10.00 apiece. It sold 150,000 preferreds to EvenFlow Funding, LLC, 100,000 preferreds to MT Trading LLC and 50,000 preferreds to Sondra Beit.
They pay 13% dividends and are convertible into common shares at an initial conversion price of $1.00. They may be redeemed for $12.50 per preferred, subject to adjustment.
At any time after June 15, 2013, holders may force the company to redeem the preferreds in cash at the applicable redemption price.
The investors also received warrants for 6 million common shares, exercisable at $0.01 until July 3, 2014.
Based in Dallas, Home Solutions provides recovery, restoration and rebuilding services.
| Issuer: | Home Solutions of America Inc.
|
| Issue: | Series C-2 convertible preferred stock
|
| Amount: | $3 million
|
| Shares: | 300,000
|
| Price: | $10.00
|
| Dividends: | 13%
|
| Conversion price: | $1.00
|
| Warrants: | For 6 million shares
|
| Warrant expiration: | July 3, 2014
|
| Warrant strike price: | $0.01
|
| Put option: | Beginning June 15, 2013 at $12.50 per preferred
|
| Investors: | EvenFlow Funding, LLC (for $1.5 million), MT Trading LLC (for $1 million), Sondra Beit (for $500,000)
|
| Settlement date: | July 3
|
| Stock symbol: | Nasdaq: HSOA
|
| Stock price: | $0.67 at close July 3
|
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