By Sheri Kasprzak
Atlanta, Oct. 29 - Motient Corp. said Friday it has agreed on a private placement of stock that will raise $126,822,783, net of $5,182.620 in commissions.
The deal is comprised of 15,353,606 shares at $8.57 per share. Warrants were also issued for 3,838,401 shares at $8.57 per share for five years. The warrants will vest only if Motient does not meet deadlines in respect to registering the shares.
The private placement was sold to 23 investors, 17 of which are current stockholders. If Motient's stock drops below $8.50 per share for five consecutive trading days, the investors may void their commitments.
Motient, a Lincolnshire, Ill.-based wireless data provider, must use the funds from the financing to make an investment in Mobile Satellite Ventures LP. On Friday, Motient entered into an agreement with MSV to buy limited partnership units in that company.
Issuer: | Motient Corp.
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Issue: | Stock
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Amount: | $126.8 million
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Shares: | 15,353,606
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Price: | $8.57
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Warrants: | For 3,838,401 shares
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Warrant expiration: | Five years
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Warrant strike price: | $8.57
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Announcement date: | Nov. 11
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Stock price: | $10.95 at close Oct. 29
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