By Devika Patel
Knoxville, Tenn., June 4 - SouthPeak Interactive Corp. sold another $2.21 million of series A convertible preferred shares between May 29 and May 30, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
On May 12, the company completed a $2 million tranche of this private placement. On May 21, SouthPeak raised $4.59 million in a second tranche, bringing the total amount raised to $8.79 million.
The company sold 2 million preferreds for $1.00 apiece in the first tranche. It sold 4,585,000 preferreds at that price in this second tranche and 2,207,500 preferreds in this tranche.
Investors also received an exchange right for their class W and class Z warrants. For 90 days after this deal settles, each investor has the right to exchange one class W or class Z warrant, which are already outstanding, for a newly authorized class Y warrant.
Each investor may exchange a number of class W or class Z warrants for class Y warrants equal to half of the number of series A preferreds purchased.
The class Y warrants, when issued, will have the same terms as the company's class W or class Z warrants, except the exercise price will be $1.50 per share, the term will expire on May 31, 2013.
Proceeds will be used for working capital and general corporate purposes.
Based in Falls Church, Va., SouthPeak Interactive, formerly known as Global Services Partners Acquisition Corp., develops and publishes interactive entertainment software.
| Issuer: | SouthPeak Interactive Corp.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $8,792,500
|
| Shares: | 8,792,500
|
| Price: | $1.00
|
| Warrants: | No
|
| Settlement date: | May 12 (for $2 million), May 21 (for $4,585,000), May 30 (for $2,207,500)
|
| Stock symbol: | OTCBB: GSPA
|
| Stock price: | $1.02 at close May 12
|
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