Units sold at $0.56 each; board of directors considers selling company
By Devika Patel
Knoxville, Tenn., April 16 – Speed Commerce, Inc. said it has arranged a $7.3 million registered direct offering of units. Roth Capital Partners LLC is the agent.
The company will sell 13,035,713 units of one common share and 0.75 warrants at $0.56 per unit.
Each whole five-year warrant is exercisable at $0.56, which is identical to the April 15 closing share price.
Settlement is expected April 21.
The company also announced that its board of directors has formed a special committee to explore strategic alternatives, including selling the company.
“Speed Commerce's board of directors is engaging in this formal process after having received unsolicited proposals and believe this approach will serve to supplement the company's continuing success, in addition to creating improved long-term value for the company's shareholders," chairman of the special committee Timothy R. Gentz said in a press release. “Given the dramatic transformation of Speed Commerce into a leading e-commerce services provider, we believe that now is the right time to engage in this process.”
“We continue to see compelling long-term opportunities for Speed Commerce, and we are excited about the progress that has been made with the integration of Fifth Gear” president and chief executive officer Richard Willis added in the release. “As the special committee of our board of directors focuses on the strategic alternatives process, we will continue with the onboarding of new clients and with our preparations for a successful trade season.”
The distributor and provider of complete logistics solutions to traditional and Internet-based retailers is based in Richardson, Texas.
| Issuer: | Speed Commerce, Inc.
|
| Issue: | Units of one common share and 0.75 warrants
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| Amount: | $7.3 million
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| Units: | 13,035,713
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| Price: | $0.56
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| Warrants: | 0.75 warrants per unit
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.56
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| Agent: | Roth Capital Partners LLC
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| Pricing date: | April 16
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| Settlement date: | April 21
|
| Stock symbol: | Nasdaq: SPDC
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| Stock price: | $0.56 at close April 15
|
| Market capitalization: | $27.69 million
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