Ascendiant assists in selling common shares with five-year warrants
By Devika Patel
Knoxville, Tenn., March 13 - ARI Network Services, Inc. said it will raise $4.8 million in a private placement of stock through agent Ascendiant Capital Markets, LLC. The deal priced Tuesday.
The company will sell common shares at $1.50 per share, which is a 21.05% discount to the March 11 closing share price of $1.90.
Investors also will receive warrants for 1,066,667 shares. The warrants are each exercisable at $2.00 for five years. The strike price is a 5.26% premium to the March 11 closing price.
Settlement is expected March 18.
"We are very pleased to announce this significant financing transaction, the proceeds from which will be used to pay down debt incurred to finance our recent acquisitions," president and chief executive officer Roy W. Olivier said in a press release. "This event will significantly enhance our balance sheet, and with the integration of our two most recent acquisitions underway, we are now well positioned to further advance our competitive standing in the marketplace and take advantage of strategic opportunities."
The Milwaukee company provides technology-enabled services.
| Issuer: | ARI Network Services, Inc.
|
| Issue: | Common stock
|
| Amount: | $4.8 million
|
| Price: | $1.50
|
| Warrants: | For 1,066,667 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.00
|
| Agent: | Ascendiant Capital Markets, LLC
|
| Pricing date: | March 12
|
| Settlement date: | March 18
|
| Stock symbol: | OTCBB: ARIS
|
| Stock price: | $1.90 at close March 11
|
| Market capitalization: | $17.65 million
|
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