By Sheri Kasprzak
Atlanta, May 16 - Bidville Inc. said it has closed a private placement for $2.5 million.
The company sold 2,500 shares of series A preferred stock at $1,000 each to Delmount International Ltd.
The investor also received warrants for 2.5 million shares, exercisable at $0.60 each through May 31, 2010.
Each preferred share is convertible into 1,667 common shares.
Delmount has the option to buy an additional $1 million in preferreds before Sept. 26.
The purchase will be made in 10 closings of 250 preferreds for $250,000 in each closing. If Delmount exercises its option to buy additional preferreds, Bidville will issue an additional warrant for 1 million shares, exercisable under the same terms.
The warrants are callable if the company's closing stock price exceeds 200% of the exercise price of the warrants for 10 consecutive trading days.
Bidville, based in Clearwater, Fla., is an online auction site operator.
| Issuer: | Bidville Inc.
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| Issue: | Series A preferred stock
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| Amount: | $2.5 million
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| Shares: | 2,500
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| Price: | $1,000
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| AIRs: | For an additional $1 million
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| Warrants: | For 2.5 million shares
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| Warrant expiration: | May 31, 2010
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| Warrant strike price: | $0.60
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| Additional warrants: | For 1 million shares (upon exercise of AIRs)
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| Investor: | Delmount International Ltd.
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| Settlement date: | May 9
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| Stock price: | $0.34 at close May 9
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