By Sheri Kasprzak
Atlanta, Feb. 10 - MRU Holdings Inc. said it has closed a private placement for $11,375,000.
The company sold 3.25 million shares of series A convertible preferred stock at $3.50 each to accredited investors.
The preferreds pay annual dividends of 4% and are convertible into common shares at $3.50 each.
The investors also received warrants for 6,545,004 shares at $3.50 each for 10 years.
MRU may redeem the preferreds at any time when its closing price exceeds a 15% premium to the conversion price for 20 out of 30 consecutive trading days.
Based in New York, MRU is a financing company that provides loans for college students.
| Issuer: | MRU Holdings Inc.
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| Issue: | Series A convertible preferred stock
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| Amount: | $11,375,000
|
| Shares: | 3.25 million
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| Price: | $3.50
|
| Dividends: | 4%
|
| Conversion price: | $3.50
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| Call: | Redeemable at any time if its closing price exceeds a 15% premium to the conversion price for 20 out of 30 consecutive trading days
|
| Warrants: | For 6,545,004 shares
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| Warrant expiration: | 10 years
|
| Warrant strike price: | $3.50
|
| Settlement date: | Feb. 4
|
| Stock price: | $5.75 at close Feb. 4
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