By Devika Patel
Knoxville, Tenn., Sept. 25 - Astea International Inc. said it raised $3 million in a private placement of its series A convertible preferred stock with Zack Bergreen, the chairman, founder and chief executive officer of the company.
The company sold 826,446 preferreds at $3.63 apiece.
The preferreds are convertible into common stock with a 1:1 ratio, subject to customary anti-dilution provisions.
The preferred stock will pay a quarterly dividend based upon an annual rate of 6%, subject to adjustment.
For the first six months after settlement, Bergreen may convert up to 40% of his securities. He may convert up to 100% of the preferreds after that.
Astea may redeem up to 60% of the preferreds during the first six months at 110% of the purchase price, plus dividends.
After two years, Astea may force conversion of all of the outstanding preferreds.
After four years, Astea may redeem all the outstanding preferreds at a price equal to the greater of 130% of the purchase price plus dividends or the fair market value of the number of common shares that the holder of the preferreds would be entitled to receive had the redeemed preferreds been converted immediately prior to the redemption.
Based in Horsham, Pa., Astea develops, markets and supports service management software products, which are licensed to companies that sell and service equipment, and/or sell and deliver professional services.
| Issuer: | Astea International Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $3 million
|
| Shares: | 826,446
|
| Price: | $3.63
|
| Dividends: | 6%
|
| Conversion ratio: | 1:1 basis
|
| Warrants: | No
|
| Investor: | Zack Bergreen
|
| Settlement date: | Sept. 25
|
| Stock symbol: | Nasdaq: ATEA
|
| Stock price: | $3.34 at close on Sept. 25
|
© 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.
