Company to sell 4.3 million shares; shareholder to sell remainder
By Angela McDaniels
Tacoma, Wash., May 26 - Multiband Corp. announced the pricing of a $33.6 million public offering of common stock. The 11.2 million shares will be sold for $3.00 each.
The price per share is a 5.66% discount to the company's $3.18 closing share price on May 25.
Of the shares being offered, Multiband is offering 4,294,932 shares, and a selling shareholder is offering 6,905,068 shares, according to a company news release.
There is an over-allotment option for an additional $5.04 million of stock.
Craig-Hallum Capital Group is the bookrunner, and Northland Capital Markets is co-manager.
The offering is expected to close June 1.
Multiband plans to use its proceeds for working capital and other general corporate purposes, including potential future acquisitions and the redemption of its 15% class E cumulative preferred stock, which is currently owned by two of its directors, for about $1.95 million.
Minneapolis-based Multiband is a home service provider for DirecTV.
| Issuer: | Multiband Corp.
|
| Issue: | Common stock
|
| Amount: | $33.6 million
|
| Greenshoe: | $5.04 million
|
| Shares: | 11.2 million
|
| Price: | $3.00
|
| Warrants: | No
|
| Bookrunner: | Craig-Hallum Capital Group
|
| Co-manager: | Northland Capital Markets
|
| Pricing date: | May 26
|
| Settlement date: | June 1
|
| Stock symbol: | Nasdaq: MBND
|
| Stock price: | $3.18 at close May 26
|
| Market capitalization: | $34.16 million
|
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