Company sells 12,727,272 common shares at $0.55 per share to investors
By Devika Patel
Knoxville, Tenn., April 25 - Kitara Media Corp. said it plans a $7 million private placement of stock. The offering's terms include the conversion of a $1 million promissory note held by Ironbound Partners Fund LLC.
The company will sell 12,727,272 common shares at $0.55 apiece. The price per share is a 45% discount to the April 24 closing share price of $1.00.
Investors will also receive warrants for 6,363,636 shares, each exercisable at $0.825 for five years. The strike price is a 17.5% discount to the April 24 closing price.
Craig-Hallum Capital Group is the agent.
The digital media company is based in Jersey City.
| Issuer: | Kitara Media Corp.
|
| Issue: | Common stock
|
| Amount: | $7 million
|
| Shares: | 12,727,272
|
| Price: | $0.55
|
| Warrants: | For 6,363,636 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.825
|
| Agent: | Craig-Hallum Capital Group
|
| Pricing date: | April 25
|
| Stock symbol: | OTCBB: KITM
|
| Stock price: | $1.00 at close April 24
|
| Market capitalization: | $49.89 million
|
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