By Sheri Kasprzak
New York, Jan. 17 - Lounsberry Holdings I, Inc. settled a $1.3 million private placement of series A convertible preferred stock.
The preferreds were issued to Barron Partners LP for Lounsberry's merger with Computer Networks & Software, Inc.
The preferreds are convertible into 10,833,334 common shares at $0.12 each.
Barron received warrants for 10 million shares exercisable at $0.20 each, for 10 million shares exercisable at $0.25 each and for 10 million shares exercisable at $0.30 each for five years.
Liberty Company Financial, LLC was the placement agent.
Also connected to the acquisition, Lounsberry redeemed 928,000 common shares from $200,000 in preferreds held by Capital Markets Advisory Group, LLC.
Under the terms of the acquisition, Lounsberry paid $1 million in cash, issued 1.075 million shares and issued 10 million warrants for common shares exercisable at $0.20 each from July 1 through Dec. 31, 2010.
Based in Ridgefield, Conn., Lounsberry Holdings does not currently have any operations. Computer Networks & Software is an information technology company based in Springfield, Va.
| Issuer: | Lounsberry Holdings I, Inc.
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| Issue: | Series A convertible preferred stock
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| Amount: | $1.3 million
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| Conversion ratio: | Into 10,833,334 common shares
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| Conversion price: | $0.12
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| Warrants: | For 30 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.20 for 10 million shares, $0.25 for 10 million shares, $0.30 for 10 million shares
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| Investor: | Barron Partners LP
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| Placement agent: | Liberty Company Financial, LLC
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| Settlement date: | Jan. 16
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