By Laura Lutz
Des Moines, Oct. 24 - OmniReliant Holdings, Inc. arranged a $6.4 million private placement of preferred stock.
Vicis Capital Master Fund and Dynamic Decisions Strategic Opportunities bought 6 million and 400,000 shares of series C convertible preferred stock, respectively.
The preferreds are convertible into common stock at $0.75 per share.
In connection with the placement, Vicis exchanged 3,000 shares of series A preferreds for 3,285,354 shares of series C preferreds, and Dynamic exchanged 600 shares of series B preferreds for 624,210 shares of series C preferreds.
Vicis also received series C-1 warrants for 12,380,472 shares and series C-2 warrants for 12,380,472 shares. Dynamic also received series C-1 warrants for 1,365,614 shares and series C-2 warrants for 1,365,614 shares.
The C-1 warrants are exercisable at $1.50 for five years, and the C-2 warrants are exercisable at $2.00 for 10 years.
Midtown Partners & Co., LLC was placement agent.
Based in Tampa, Fla., OmniReliant is a product licensing, management and marketing firm.
| Issuer: | OmniReliant Holdings, Inc.
|
| Issue: | Series C preferred stock
|
| Amount: | $6.4 million
|
| Shares: | 6.4 million
|
| Price: | $1.00
|
| Conversion price: | $0.75
|
| Warrants: | C-1 warrants for 13,746,086 shares; C-2 warrants for 13,746,086 shares
|
| Warrant expiration: | Five years for C-1; 10 years for C-2
|
| Warrant strike price: | $1.50 for C-1; $2.00 for C-2
|
| Investors: | Vicis Capital Master Fund (for $6 million); Dynamic Decisions Strategic Opportunities (for $400,000)
|
| Placement agent: | Midtown Partners & Co., LLC
|
| Settlement date: | Oct. 18
|
| Stock symbol: | OTCBB: ORHIE
|
| Stock price: | $2.60 at close Oct. 24
|
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