By Devika Patel
Knoxville, Tenn., Aug. 5 - China Broadband, Inc. completed a $9.63 million private placement of its preferred and common stock units on July 30, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal priced for $10.53 million on May 20.
The preferreds and common shares were sold in units at a purchase price of $0.50 per series A preferred unit and series B preferred unit and $0.05 per common stock unit.
The company sold $3.13 million of common units, $3.5 million of series A units and $3 million of series B units.
Each series A unit consists of one series A preferred and one warrant for 34.2857 shares. Each series B unit consists of one series B preferred and one warrant for 10 shares. Each common stock unit consists of one common share and one warrant.
Each warrant is exercisable at $0.05 per share for five years. The strike price represents a 68.75% discount to the closing share price of $0.16 on May 19.
Each preferred is convertible into 10 common shares.
China Broadband is a cable broadband company with headquarters in Boulder, Colo.
| Issuer: | China Broadband, Inc.
|
| Issue: | Units of one series A preferred share and one warrant for 34.2857 shares; units of one series B preferred share and one warrant for 10 shares; units of one common share and one warrant
|
| Amount: | $9,625,000
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.05
|
| Pricing date: | May 20
|
| Settlement date: | July 30
|
| Stock symbol: | OTCBB: CBBD
|
| Stock price: | $0.16 at close May 20
|
| Market capitalization: | $6.51 million
|
|
|
| Series A preferred units
|
| Amount: | $3.5 million
|
| Units: | 7 million
|
| Price: | $0.50
|
| Conversion ratio: | Into 10 common shares (per preferred)
|
| Warrants: | One warrant for 34.2857 shares per unit
|
|
|
| Series B preferred units
|
| Amount: | $3 million
|
| Units: | 6 million
|
| Price: | $0.50
|
| Conversion ratio: | Into 10 common shares (per preferred)
|
| Warrants: | One warrant for 10 shares per unit
|
|
|
| Common stock units
|
| Amount: | $3,125,000
|
| Price: | $0.05
|
| Warrants: | One warrant per unit
|
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