Deal also includes five-year warrants; preferreds pay 12% dividends
By Devika Patel
Knoxville, Tenn., Oct. 15 - BeesFree, Inc. raised $542,325 in a private placement of its 12% series B cumulative convertible preferred stock with five investors on Oct. 12, according to an 8-K filed Monday with the Securities and Exchange Commission. The deal priced Oct. 10.
The company sold 3,099 preferreds at $175.00 per preferred. Each preferred converts to common stock at an initial conversion price of $1.75 per share. The preferreds will automatically convert after three years. The conversion price is a 3.55% premium to the Oct. 9 closing share price of $1.69.
Investors also received warrants for 309,900 common shares, exercisable at $2.26 for five years. The strike price reflects a 33.73% premium to the Oct. 9 closing share price.
Based in Albany, N.Y., BeesFree is a private company offering cleaning services.
| Issuer: | BeesFree, Inc.
|
| Issue: | Series B cumulative convertible preferred stock
|
| Amount: | $542,325
|
| Shares: | 3,099
|
| Dividends: | 12%
|
| Price: | $175.00
|
| Conversion price: | $1.75
|
| Call: | After three years
|
| Warrants: | For 309,900 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.26
|
| Pricing date: | Oct. 10
|
| Settlement date: | Oct. 12
|
| Stock symbol: | OTCBB: BEES
|
| Stock price: | $1.69 at close Oct. 9
|
| Market capitalization: | $27.36 million
|
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