By Sheri Kasprzak
Atlanta, June 20 - Adsouth Partners Inc. said it has wrapped a private placement of preferreds for $3,311,703.
The company sold a total of 1,226,557 series B preferred shares at $2.70 each to Barron Partners, LP; Vestal Venture Capital; and Richard Molinsky.
The preferreds do not pay dividends.
The preferred shares are convertible into common stock at a rate of nine common shares for each preferred.
Barron received warrants for 9,058,780 shares, Vestal 2,758,377 shares and Molinsky 182,842 shares.
The warrants were issued to Vestal and Molinsky to settle principal and interest on promissory notes held by both - Vestal's for $750,000 and Molinsky $50,000. Vestal also received warrants for 875,000 shares and Molinsky for 62,500 shares, both issued in previous private placements.
The warrants are exercisable at $0.65 each for 2.5 million shares, $1.20 each for 2.5 million shares, $1.50 each for 3.5 million shares and $1.80 each for 3.5 million shares. All expire in five years.
Atlas Capital Services, LLC was the placement agent in the offering.
Based in Boca Raton, Fla., Adsouth is a media company focused on direct response advertising.
| Issuer: | Adsouth Partners Inc.
|
| Issue: | Series B preferred stock
|
| Amount: | $3,311,703
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| Shares: | 1,226,557
|
| Price: | $2.70
|
| Conversion ratio: | Each preferred into nine common shares
|
| Warrants: | For 12 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.65 each for 2.5 million shares; $1.20 each for 2.5 million shares; $1.50 each for 3.5 million shares; $1.80 each for 3.5 million shares
|
| Placement agent: | Atlas Capital Services, LLC
|
| Investors: | Barron Partners LP; Vestal Venture Capital and Richard Molinsky
|
| Settlement date: | June 17
|
| Stock price: | $0.66 at close June 17
|
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