By Sheri Kasprzak
Atlanta, Nov. 30 - Aegis Assessments Inc. released details Tuesday on its previously announced $5 million private placement.
On Nov. 23, the company sold 5 million shares of common stock to four accredited investors in exchange for a U.S. Treasury note and stripped equity bonds totaling $5 million.
Potente Capital Inc., Ellenallhatatlan Inc., Nieodparty Inc. and Krachtig Inc. were all investors in the deal.
The Treasury notes are the first step toward a listing on the American Stock Exchange for Aegis. The company's stock is traded on the over-the-counter bulletin board.
The bonds in the deal will serve as collateral in an equity swap with Cogent Capital Corp., the placement agent in the deal. The bonds will remain in a collateral account for two years and may be used with a call option. If Aegis' stock has not dropped below the value designated with the transaction closed, the bonds will be released from collateral and Aegis may use the funds for working capital.
While the bonds are held in collateral, Aegis may borrow against the value of the bonds from a third party willing to take a subordinated position to Cogent.
Aegis is a Scottsdale, Ariz.-based homeland defense contractor. It plans to use the proceeds from the private placement to expand its production capabilities, establish a distribution channel for its products, hire additional sales personnel and meet requirement for acceptance on the American Stock Exchange.
| Issuer: | Aegis Assessments Inc.
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| Issue: | Stock
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| Amount: | $5 million
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| Shares: | 5 million
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| Price: | $5 million in U.S. Treasury notes and stripped equity bonds
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| Warrants: | No
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| Placement agent: | Cogent Capital Corp.
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| Investors: | Potente Capital Inc., Ellenallhatatlan Inc., Nieodparty Inc. and Krachtig Inc.
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| Announcement date: | Nov. 17
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| Settlement date: | Nov. 29
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| Stock price: | $0.12 at close Nov. 17
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| Stock price: | $0.11 at close Nov. 29
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