Company modifies terms of preferred units after suspending offering
By Devika Patel
Knoxville, Tenn., Sept. 13 - Motricity, Inc. said it modified the terms of the preferred units it is selling in a public rights offering, according to a prospectus filed Tuesday with the Securities and Exchange Commission. American Stock Transfer & Trust Co., LLC is the agent for the deal, which priced July 24 and was suspended on Aug. 15 for changes to be made to the units. The deal will raise $28 million in net proceeds.
The company will now sell preferred 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.
The units originally consisted of 0.02599 12% redeemable series J preferred shares and 0.30861 warrants, with the warrants exercisable at $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: | $28 million (net)
|
| Price: | $0.65
|
| Warrants: | 0.30861 warrants per unit (a total of 14,248,741 warrants)
|
| Warrant strike price: | $0.65
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| Agent: | American Stock Transfer & Trust Co., LLC
|
| Pricing date: | July 24
|
| Suspended: | Aug. 15
|
| Revised: | Sept. 13
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| Stock symbol: | Nasdaq: MOTR
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| Stock price: | $0.51 at close July 23
|
| Market capitalization: | $25.28 million
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