Common shares sold to investor Raging Capital Management at $3.75 each
By Devika Patel
Knoxville, Tenn., Jan. 5 - SMG Indium Resources Ltd. said it will conduct a $7.5 million private placement of stock.
The company will sell 2 million common shares at $3.75 per share to Raging Capital Management LLC. The price per share is an 8.7% premium to the Jan. 4 closing share price of $3.45.
Proceeds will be used to purchase indium and for general corporate purposes.
"We are pleased that our largest shareholder, Raging Capital Management LLC, continues to believe in our corporate vision and has decided to increase its investment in our company," chief executive officer Alan C. Benjamin said in a press release. "We have agreed to issue common stock at a 10% premium to the closing bid price and essentially at parity to our Net Market Value, which was last reported on our website on Dec. 31 at $3.76 per share. With the proceeds, we will continue to expand our strategic stockpile of indium."
Based in New York, SMG purchases and stockpiles indium and claims to have the largest stockpile of indium outside of China. The rare metal is used to make liquid crystal displays and touchscreens.
| Issuer: | SMG Indium Resources Ltd.
|
| Issue: | Common stock
|
| Amount: | $7.5 million
|
| Shares: | 2 million
|
| Price: | $3.75
|
| Warrants: | No
|
| Investor: | Raging Capital Management LLC
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| Pricing date: | Jan. 5
|
| Stock symbol: | OTCBB: SMGI
|
| Stock price: | $3.45 at close Jan. 4
|
| Market capitalization: | $23.57 million
|
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