Astea International shareholder questions $3 million private placement of preferreds with CEO

By Lisa Kerner

Charlotte, N.C., Sept. 30 - Astea International, Inc. shareholder Versata Enterprises, Inc. said the recently reported transaction between Astea and its chairman, founder and chief executive officer, Zach Bergreen, does not appear to have been negotiated at arms length.

Versata, a 6.3% shareholder, proposed an alternative transaction it said offers more value to all of the company's shareholders, according to its Sept. 29 letter to the Astea board of directors included in a schedule 13D/A filed with the Securities and Exchange Commission.

The investor proposes acquiring 826,446 shares of newly issued common stock at $3.63 per share. With the purchase, Versata would expect one seat on Astea's board of directors.

On Sept. 25, Astea announced it had concluded a private placement of 826,446 shares of newly designated series A convertible preferred stock to Bergreen.

The shares were priced at $3.63 each for a total investment by Bergreen of $3 million, according to a prior SEC filing.

Astea said each preferred is convertible into one share of common stock.

The investment was negotiated and unanimously approved by the audit committee of Astea's board, the filing said.

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.

© 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.