Significant adjustments to company's cost structure also implemented
By Devika Patel
Knoxville, Tenn., May 7– AudioEye, Inc. completed a $1.75 million private placement of 5% series A convertible preferred stock.
The company sold 175,000 preferreds at $10.00 apiece. It may redeem the preferreds for $12.50 apiece, plus dividends.
The preferreds are convertible into common shares at $0.1754 per share, a 23.74% discount to the May 6 closing share price of $0.23.
Executive chairman Carr Bettis, board member Sandy Purcell, president Sean Bradley and strategic consultant David Kovacs participated.
"The completion of this financing, along with the participation of certain directors and executives, illustrates confidence in the company's ability to execute on its business plan,” Bettis said in a press release. “The financing provides additional runway for the company to focus on sales to corporations, institutions and government agencies that understand the value of providing unparalleled web access to customers and constituents with disabilities, in addition to their need to comply with web accessibility laws.”
The company announced in the same release that it has made “significant adjustments to the cost structure of the firm, including staff reductions, material reductions in salary and salary deferrals by president Sean Bradley and chief innovation officer Nathaniel Bradley, and the elimination of the chief operating officer position entirely. AudioEye's organizational chart has also been reconfigured, with all executives now reporting directly to the executive chairman.”
The Tucson company develops media creation and content management software that enables website owners to render their websites in complete audio format.
| Issuer: | AudioEye, Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $1.75 million
|
| Preferreds: | 175,000
|
| Price: | $10.00
|
| Dividends: | 5%
|
| Conversion price: | $0.1754
|
| Call: | At 125
|
| Warrants: | No
|
| Investors: | Carr Bettis, Sandy Purcell, Sean Bradley and David Kovacs
|
| Settlement date: | May 7
|
| Stock symbol: | OTCBB: AEYE
|
| Stock price: | $0.23 at close May 6
|
| Market capitalization: | $14.83 million
|
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