Company sells common shares at $3.50 apiece with 1 million warrants
By Devika Patel
Knoxville, Tenn., Feb. 8 - Hughes Telematics, Inc. concluded a private placement of stock on Feb. 7, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The offering raised $5 million.
The company sold 1,428,572 common shares at $3.50 apiece. The price per share is a 17.65% discount to $4.25, the Feb. 4 closing share price.
Investors also received warrants for 1 million shares. The warrants are exercisable at $5.99 until Dec. 17, 2014. The strike price is a 40.94% premium to the Feb. 4 closing share price.
The investors also loaned the company approximately $5 million with a 9% interest rate.
Proceeds will be used for general corporate purposes.
Based in Atlanta, Hughes develops and manages vehicle- and driver-centric solutions to improve the driving and ownership experience.
| Issuer: | Hughes Telematics, Inc.
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| Issue: | Common stock, loan
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| Amount: | $10 million (approximate)
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| Warrants: | For 1 million shares
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| Warrant expiration: | Dec. 17, 2014
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| Warrant strike price: | $5.99
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| Settlement date: | Feb. 7
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| Stock symbol: | OTCBB: HUTC
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| Stock price: | $4.30 at close Feb. 7
|
| Market capitalization: | $141.06 million
|
|
|
| Shares
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| Amount: | $5 million
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| Shares: | 1,428,572
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| Price: | $3.50
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|
|
| Loan
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| Amount: | $5 million (approximate)
|
| Coupon: | 9%
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