By Sheri Kasprzak
Atlanta, Oct. 28 - On2 Technologies Inc. said Thursday it raised $4 million through a private placement.
The company sold 5,714,286 shares of series D convertible preferred shares at a conversion price of $0.70 to Midsummer Investment Ltd. and one other institutional investor.
The investors also received a one-year warrant to buy 2,993,197 shares at $0.65 and a five-year warrant for 2,993,197 shares at $0.76.
Holders of the series D stock will receive an 8% annual dividend, payable in cash or shares of common stock.
H.C. Wainwright & Co. Inc. served as placement agent in the deal.
On2 Technologies is a video compression technology company based in New York. The company will use the funds from the financing to improve its balance sheet strength.
| Issuer: | On2 Technologies Inc.
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| Issue: | Series D convertible preferred shares
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| Amount: | $4 million
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| Shares: | 5,714,286
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| Conversion price: | $0.70
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| Dividend: | 8% per year
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| Warrants: | One-year warrants for 2,993,197; five-year warrants for 2,993,197
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| Warrant expiration: | One and five years
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| Warrant strike price: | One-year warrants at $0.65; five-year warrants at $0.76
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| Placement agent: | H.C. Wainwright & Co. Inc.
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| Investors: | Midsummer Investment Ltd.
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| Settlement date: | Oct. 27
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| Stock price: | $0.57 at close Oct. 27
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