JCH Crenshaw buys preferreds with warrants for 325,000 common shares
By Devika Patel
Knoxville, Tenn., April 18 - American Electric Technologies, Inc. said it plans a $5 million private placement of series A convertible preferred stock.
The company will sell $5 million of preferreds to JCH Crenshaw Holdings, LLC. The preferreds are convertible into 1 million common shares at a conversion price of $5.00 per share. The conversion price is a 3.95% premium to the April 17 closing price of $4.81.
JCH Crenshaw also will receive warrants for 125,000 common shares, which are each exercisable at $6.00, a 24.74% premium to the April 17 closing price, and warrants for 200,000 shares, which are each exercisable at $7.00, a 45.53% premium to the April 17 closing price.
Proceeds will be used for general corporate purposes, which may include expansion of the company's manufacturing capacity, accelerating its international expansion in key energy markets, including Brazil and China, and making additional corporate acquisitions.
American Electric is a renewable energy company in Houston.
| Issuer: | American Electric Technologies, Inc.
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| Issue: | Series A convertible preferred stock
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| Amount: | $5 million
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| Conversion price: | $5.00
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| Conversion ratio: | Into 1 million common shares
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| Conversion premium: | 3.95%
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| Warrants: | For 325,000 shares
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| Warrant strike price: | $6.00 (for 1125,000 shares), $7.00 (for 200,000 shares)
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| Investor: | JCH Crenshaw Holdings, LLC
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| Pricing date: | April 18
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| Stock symbol: | Nasdaq: AETI
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| Stock price: | $4.81 at close April 17
|
| Market capitalization: | $37.84 million
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