Company could pocket up to $60 million through series A preferreds
By Devika Patel
Knoxville, Tenn., Nov. 15 - Absolute Life Solutions, Inc. completed a second tranche of a private placement of series A convertible preferred stock. It raised $20.8 million in addition to the $5 million it took in on July 21 and may sell a total of up to $60 million of preferreds.
The company overall is selling 60,000 of the 12.5% preferreds at $1,000 apiece. It sold 5,000 preferreds in the first tranche and 20,800 preferreds in the second. The preferreds are convertible into common stock at $1.00 per share.
The investors also will receive warrants for 60 million shares. Half of the warrants are exercisable at $2.00. The remaining warrants are exercisable at $4.00.
"There has been a marked increase in interest surrounding the life settlements business, and today's announcement continues to validate our belief that our industry is poised for significant growth," chief executive officer Moshe Oratz said in a press release.
"Institutional investors are beginning to comprehend the new dynamics of our business, which we believe has created a level enthusiasm and interest in our strategic plans.
"We expect that the momentum we are currently experiencing in our capital raising activities will carry us through to its completion in the very near future.
"There is a new era emerging in our business whereby prudent analysis and diversified policy holdings will help to create an asset class that brings long term value to shareholders. With our industry expertise, proprietary data analysis capabilities, and thorough understanding of the emerging demographics of our business, we believe we are uniquely positioned to compete and succeed in this market," Oratz concluded.
Absolute Life Solutions, formerly Shimmer Gold, Inc., is a specialty financial services company in New York.
| Issuer: | Absolute Life Solutions, Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $60 million (maximum)
|
| Shares: | 60,000
|
| Price: | $1,000
|
| Conversion price: | $1.00
|
| Dividends: | 12.5%
|
| Warrants: | For 60 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.00 (50% of the warrants), $4.00 (50% of the warrants)
|
| Settlement date: | July 21 (for $5 million), Nov. 15 (for $20.8 million)
|
| Stock symbol: | OTCBB: SMGN
|
| Stock price: | $2.00 at close July 21
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
