Modern Technology raises $3.5 million in private placement of notes, preferreds

By Sheri Kasprzak

Atlanta, Jan. 28 - Modern Technology Corp. said it will bring in $3.5 million after it closes a private placement of notes and preferred stock.

The company has received agreements for $2 million in senior secured convertible redeemable notes and $1.5 million in series A preferred stock from four institutional investors.

The notes bear interest at 8% annually.

The investors also received warrants for 3 million shares.

Modern Technology chief executive officer Anthony Welch declined to comment on the other details of the offering, referring instead to the form 8-K the company will be filing with the Securities and Exchange Commission.

Based in Oxford, Miss., Modern Technology is a business development and acquisition company that provides business infrastructure, intellectual capital, investments and market and revenue expansion services. The proceeds will be used for the completion of the company's acquisition of Sound City Corp. and for working capital. The company used $1.5 million from the offering to buy a $1.5 million convertible debenture from DeMarco Energy Systems of America Inc.

On Friday, the company's stock closed up $0.04 at $0.31.

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