By Sheri Kasprzak
Atlanta, Jan. 13 - Knockout Holdings Inc. will raise up to $6 million in a private placement.
The company plans to sell up to 127,950 shares of series B preferred stock at $46.8933 each.
The preferreds pay annual dividends of 10% of the stated value. If the company does not redeem, cancel or convert the preferreds 180 days after the preferreds are sold, the dividend rate increases to 20%.
The preferreds will automatically convert into common shares after Knockout amends its certificate of incorporation. The preferreds are convertible at $0.2931.
The offering also includes warrants for up to 2,047,200 shares at $2.25 each for five years.
The company completed the first closing of the offering on Jan. 10 for a total of $3,265,000.
Duncan Capital LLC is the placement agent in the deal.
Knockout Holdings, based in New York, is a holding company for AccessNewAge Corp., which sells New Age products and services online.
| Issuer: | Knockout Holdings Inc.
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| Issue: | Series B preferred stock
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| Amount: | $6 million
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| Shares: | 127,950 (maximum)
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| Price: | $46.8933
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| Dividend: | 10%
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| Conversion price: | $0.2931
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| Warrants: | For 2,047,200 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $2.25
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| Placement agent: | Duncan Capital LLC
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| Announcement date: | Jan. 13
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| Stock price: | $1.12 at close Jan. 13
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