Company sells 46,163,685 preferred units at $0.65 per unit in offering
By Devika Patel
Knoxville, Tenn., Oct. 11 - Motricity, Inc. said it completed a $30 million public rights offering. American Stock Transfer & Trust Co., LLC was the agent for the deal, which priced July 24 and was suspended on Aug. 15 to amend the units. The deal was revised to raise $28 million in net proceeds on Sept. 13.
The company sold 46,163,685preferred units at $0.65 per unit, with each unit consisting of 0.02599 13% redeemable series J preferred shares and 0.21987 warrants. The whole warrants are each exercisable at $0.65, which is a 27.45% premium to the July 23 closing share price of $0.51.
Proceeds will be used to repay up to $5 million of debt under the company's revolving loan facility with High River LP and for general corporate and working capital purposes.
Based in Bellevue, Wash., Motricity provides a suite of hosted, managed service offerings, including mobile web portal, storefront, messaging and billing support and settlement, which enable wireless carriers to deliver customized, carrier-branded mobile data services to their wireless subscribers.
| Issuer: | Motricity, Inc.
|
| Issue: | Units of 0.02599 13% redeemable series J preferred shares and 0.21987 warrants
|
| Amount: | $30,006,395
|
| Units: | 46,163,685
|
| Price: | $0.65
|
| Warrants: | 0.21987 warrants per unit
|
| Warrant strike price: | $0.65
|
| Agent: | American Stock Transfer & Trust Co., LLC
|
| Pricing date: | July 24
|
| Suspended: | Aug. 15
|
| Revised: | Sept. 13
|
| Settlement date: | Oct. 11
|
| Stock symbol: | Nasdaq: MOTR
|
| Stock price: | $0.51 at close July 23
|
| Market capitalization: | $18.28 million
|
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