Four types of units are sold at $0.25, $0.50, $0.75, $1.00 per share
By Devika Patel
Knoxville, Tenn., Nov. 26 – Confederate Motors, Inc. said it plans a $5 million private placement of stock.
The company will sell 8 million units consisting of 100,000 common shares each. Each A unit will be sold at $25,000 per A unit, or $0.25 per share. Each B unit will be sold at $50,000 per B unit, or $0.50 per share. Each C unit will be sold at $75,000 per C unit, or $0.75 per share. Each D unit will be sold at $100,000 per D unit, or $1.00 per share.
The prices per share of the units are 54.55% and 9.09% discounts and 36.36% and 81.82% premiums to the Nov. 25 closing share price of $0.55.
Proceeds will be used for general corporate purposes including the costs associated with manufacturing and selling the company’s line of premium motorcycles, including inventory, working capital, design and marketing.
Birmingham, Ala.-based Confederate Motors manufactures street motorcycles.
| Issuer: | Confederate Motors, Inc.
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| Issue: | Units of 100,000 common shares
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| Amount: | $5 million
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| Units: | 8 million
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| Price per share: | $0.25, $0.50, $0.75 and $1.00
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| Warrants: | No
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| Pricing date: | Nov. 26
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| Stock symbol: | OTCBB: CFED
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| Stock price: | $0.55 at close Nov. 25
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| Market capitalization: | $9.19 million
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