By Sheri Kasprzak
New York, Feb. 14 - Lounsberry Holdings III, Inc. said it completed a private placement for $3.9 million.
The company sold 3.12 million shares of series A convertible preferred stock to Barron Partners LP, Ray and Amy Rivers, JTROS, Steve Mazur and William M. Denkin.
Barron bought $3.3 million of the preferreds and the other three investors purchased $200,000 each of the preferreds.
The preferreds are convertible into a total of 3.12 million common shares.
Proceeds will be used for working capital.
The investors received warrants for 7,389,476 shares. Of the shares, 3,694,738 are exercisable at $1.75 each and 3,694,738 shares are exercisable at $2.50 each. The warrants expire in five years.
The offering was conducted as part of Lounsberry's acquisition of Guangzhou Konzern Medicine Co. Ltd. Lousberry issued 6.53 million common shares to the owners of Konzern.
Also, as part of the acquisition, Lounsberry redeemed 928,000 shares from Capital Markets Advisory Group, LLC for $200,000.
Based in Ridgefield, Conn., Lounsberry Holdings does not currently have any operations.
| Issuer: | Lounsberry Holdings III, Inc.
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| Issue: | Series A convertible preferred stock
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| Amount: | $3.9 million
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| Shares: | 3.12 million
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| Price: | $1.25
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| Conversion ratio: | Into common shares on a one-for-one basis
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| Conversion price: | $1.25
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| Warrants: | For 7,389,476 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $1.75 for 3,694,738 shares; $2.50 for 3,694,738 shares
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| Investors: | Barron Partners LP, Ray and Amy Rivers, JTROS, Steve Mazur, William M. Denkin
|
| Settlement date: | Feb. 8
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