Preferreds pay 7% dividends and convert to stock at $1.00 per share
By Devika Patel
Knoxville, Tenn., Sept. 23 - Westech Capital Corp. said it completed an $8.48 million private placement of its series A noncumulative convertible preferred stock.
The company sold 339 preferreds at $25,000 each to lead investors John J. Gorman IV and James B. Fellus.
The 7% preferreds convert to a total of 8,475,000 common shares for a conversion price of $1.00 per share. The conversion price reflects a 92.31% premium to the closing share price of $0.52 on Sept. 22. The preferreds will automatically convert if the company's common stock trades at or above $3.00 for 20 consecutive trading days.
Proceeds will be used to expand the firm's capital and product offerings.
Westech, based in Austin, Texas, is a financial services holding company.
| Issuer: | Westech Capital Corp.
|
| Issue: | Series A noncumulative convertible preferred stock
|
| Amount: | $8,475,000
|
| Preferreds: | 339
|
| Price: | $25,000
|
| Dividends: | 7%
|
| Conversion price: | $1.00
|
| Conversion ratio: | Into a total of 8,475,000 shares
|
| Conversion premium: | 92.31%
|
| Automatic conversion: | If company's common stock trades at or above $3.00 for 20 consecutive trading days
|
| Warrants: | No
|
| Investors: | John J. Gorman IV and James B. Fellus (leads)
|
| Settlement date: | Sept. 23
|
| Stock symbol: | Pink Sheets: WTEC
|
| Stock price: | $0.52 at close Sept. 22
|
| Market capitalization: | $5.04 million
|
© 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.
