Motricity halts $28 million public rights offering of preferred units

Deal will resume once company has modified composition of the units

By Devika Patel

Knoxville, Tenn., Aug. 15 - Motricity, Inc. said it has suspended a $28 million public rights offering of preferred units in order to modify the composition of the units it plans to offer. American Stock Transfer & Trust Co., LLC is the agent for the deal, which priced on July 24.

Motricity said it will resume the rights offering after the units have been modified.

The company had planned to sell preferred units at $0.65 per unit, with each unit consisting of 0.02599 12% redeemable series J preferred shares and 0.30861 warrants. The whole warrants were each to be exercisable at $0.51, which is identical to the July 23 closing share price.

The company planned to sell a total of 1.2 million preferreds and 14,248,741 warrants.

Based in Bellevue, Wash., Motricity provides a suite of hosted, managed service offerings, including mobile web portal, storefront, messaging, and billing support and settlement, which enable wireless carriers to deliver customized, carrier-branded mobile data services to their wireless subscribers.

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