Series B convertible preferred stock sold with quarter-share warrants
By Devika Patel
Knoxville, Tenn., July 8 – Towerstream Corp. settled a $1.25 million private placement of units on July 7, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal priced on July 6.
The company will sell 892,857 units of one series B convertible preferred share and a quarter-share warrant at $1.40 per unit. Each preferred converts into half a common share.
The five-year warrants are exercisable at $3.00. The company completed a 20-to-1 reverse stock split on July 7. The warrant strike price is equal to what the July 5 closing share price would have been had the reverse split been completed at that time.
Based in Middletown, R.I., Towerstream provides broadband services.
| Issuer: | Towerstream Corp.
|
| Issue: | Units of one series B convertible preferred share and a quarter-share warrant
|
| Amount: | $1.25 million
|
| Shares: | 892,857
|
| Price: | $1.40
|
| Warrants: | One quarter-share warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.00
|
| Pricing date: | July 6
|
| Settlement date: | July 7
|
| Stock symbol: | Nasdaq: TWER
|
| Stock price: | $0.15 at close July 5
|
| Market capitalization: | $9.76 million
|
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