Chardan assists with selling 14 million shares at 40.54% discount
By Devika Patel
Knoxville, Tenn., Jan. 20 - Wizzard Software Corp. gave further details about a registered direct offering of stock in an 8-K filed Thursday with the Securities and Exchange Commission. The deal, which priced Jan. 18, will raise $3.08 million via agent Chardan Capital Markets.
The company will sell 14 million common shares at $0.22 apiece, a 40.54% discount to the Jan. 14 closing share price of $0.37. Investors also will receive warrants for 5,283,187 shares, which are each exercisable at $0.43 for five years. The strike price is a 16.22% premium to the Jan. 14 closing share price.
Settlement is expected Jan. 21.
Proceeds will be used to retire $1 million in debt, which is due on April 1, 2011, for mobile App development, operations, mobile App investments and accretive acquisitions.
"We see significant growth opportunity for our podcast Apps business and with this capital raise we believe we can now accelerate the growth of our mobile media business to keep up with the rapidly changing entertainment consumption habits of consumers worldwide," chief executive officer Chris Spencer said in a press release at pricing. "This is the future consumption and monetization model for online media and Wizzard is delivering it today.
"As we continue to be the publishing platform of choice for the best podcast publishers we expect to continue along our path of becoming one of the top global new media powerhouses of the future. This capital, along with becoming a debt free company, allows Wizzard to make strategic acquisitions and investments in the rapidly growing mobile App industry," Spencer concluded.
Based in Pittsburgh, Wizzard is a podcast hosting network.
| Issuer: | Wizzard Software Corp.
|
| Issue: | Common stock
|
| Amount: | $3.08 million
|
| Shares: | 14 million
|
| Price: | $0.22
|
| Warrants: | For 5,283,187 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.43
|
| Agent: | Chardan Capital Markets
|
| Pricing date: | Jan. 19
|
| Settlement date: | Jan. 21
|
| Stock symbol: | Amex: WZE
|
| Stock price: | $0.43 at close Jan. 18
|
| Market capitalization: | $16.69 million
|
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