By Angela McDaniels
Tacoma, Wash., Jan. 14 - Bonds.com Group, Inc. sold $1.76 million of units to UBS Americas Inc. in a private placement on Monday, according to an 8-K filed with the Securities and Exchange Commission on Thursday.
The company sold 1,760 units for $1,000 apiece.
Each unit includes 26.67 shares of series A participating preferred stock and rights to purchase 72 preferreds at a price of $37.50 per preferred. The rights expire on Jan. 11, 2013.
If the company issues common stock at a price of less than $0.375 per share, the exercise price of the rights will be decreased to an amount equal to that lower price multiplied by 100.
Under the purchase agreement, the company must use the proceeds for general corporate and working capital purposes and not for the repayment of any outstanding debt of the company or its subsidiaries or the redemption or repurchase of any of its or its subsidiaries' equity securities.
Under a purchase agreement reached in August with investor Fund Holdings, LLC, Fund Holdings was entitled to buy rights to purchase 2,397 shares of common stock for each unit purchased by UBS. As a condition to the placement with UBS, Fund Holdings relinquished its right to purchase rights for 1,056,000 shares and requested that the company instead issue UBS rights to purchase an additional 10,560 preferreds. The company said it has done so.
The Boca Raton, Fla.-based company provides an online trading platform to institutional and individual fixed-income investors through subsidiary Bonds.com, Inc.
| Issuer: | Bonds.com Group, Inc.
|
| Issue: | Units of 26.67 shares of series A participating preferred stock and rights
|
| Amount: | $1.76 million
|
| Units: | 1,760
|
| Price: | $1,000
|
| Rights: | For 72 preferreds per unit
|
| Rights expiration: | Jan. 11, 2013
|
| Rights strike price: | $37.50
|
| Investor: | UBS Americas Inc.
|
| Settlement date: | Jan. 11
|
| Stock symbol: | OTCBB: BDCG
|
| Stock price: | $0.30 at close Jan. 13
|
| Market capitalization: | $20.47 million
|
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