By Angela McDaniels
Tacoma, Wash., July 6 - OmniReliant Holdings, Inc. priced a $5 million private placement of 8% series G convertible preferred shares with Vicis Capital Master Fund on June 30, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
Vicis purchased 5 million preferreds and received a 10-year warrant for 50 million common shares, exercisable at $0.10 per share.
The conversion price of the preferreds is $0.10 per common share.
The preferreds will be redeemed at $1.00 each on June 30, 2013.
Holders are entitled to a special preferred distribution on each preferred equal to $8.12 plus all accrued dividends less the amount of the additional dividend, if any. If the special preferred distribution is not paid by the redemption date, it will accrue interest at the rate of 8% per year.
The additional dividend is payable on June 30, 2011 if the special preferred distribution has not yet been paid and is equal to $1.00 per preferred.
The $5 million purchase price consisted of $3.5 million in cash and the return and cancellation of the $1.5 million 8% convertible promissory note issued to Vicis on June 4.
Based in Tampa, Fla., OmniReliant is a product licensing, management and marketing firm.
| Issuer: | OmniReliant Holdings, Inc.
|
| Issue: | Series G convertible preferred stock
|
| Amount: | $5 million
|
| Preferred shares: | 5 million
|
| Price: | $1.00
|
| Maturity: | June 30, 2013
|
| Dividends: | 8%
|
| Conversion price: | $0.10
|
| Warrants: | For 50 million shares
|
| Warrant expiration: | 10 years
|
| Warrant strike price: | $0.10
|
| Investor: | Vicis Capital Master Fund
|
| Pricing date: | June 30
|
| Stock symbol: | OTCBB: ORHI
|
| Stock price: | $0.06 at close June 29
|
| Market capitalization: | $9.54 million
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