By Sheri Kasprzak
Atlanta, May 17 - Bidville Inc. said Tuesday that the $2.5 million private placement it closed Monday had been priced at a premium of more than 50%.
On Monday, Delmount International Ltd. bought 2,500 shares of series A convertible preferred stock at $1,000 each.
Each preferred is convertible into 1,667 common shares at $0.60 each.
The conversion price represented a 54% premium to the company's closing stock price of $0.39 on May 16.
The investor also received warrants for 2.5 million shares, exercisable at $0.60 each through May 31, 2010.
Delmount has the option to buy $1 million in additional preferreds.
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.
Bidville, based in Clearwater, Fla., is an online auction site operator. The proceeds will be used to develop existing projects and to establish new business opportunities.
| Issuer: | Bidville Inc.
|
| Issue: | Series A preferred stock
|
| Amount: | $2.5 million
|
| Shares: | 2,500
|
| Price: | $1,000
|
| Conversion ratio: | Each preferred into 1,667 common shares
|
| Conversion price: | $0.60
|
| AIRs: | For an additional $1 million
|
| Warrants: | For 2.5 million shares
|
| Warrant expiration: | May 31, 2010
|
| Warrant strike price: | $0.60
|
| Additional warrants: | For 1 million shares (upon exercise of AIRs)
|
| Investor: | Delmount International Ltd.
|
| Settlement date: | May 16
|
| Stock price: | $0.39 at close May 16
|
|
|
© 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.
