Deal replaces $15 million sale of stock, preferreds with Clairemont
By Devika Patel
Knoxville, Tenn., Oct. 22 – Major League Football Inc. cancelled plans for a $15 million private placement of 7% series A convertible preferred stock and common stock with Clairemont Private Investment Group, LLC that priced on Sept. 8, according to an 8-K filed Thursday with the Securities and Exchange Commission. The $5 million tranche that settled on Oct. 2 was rescinded and all preferreds and warrants that were issued were returned to the company.
The deal is being replaced by a new $20 million offering that was arranged with the investor on Oct. 20.
In the new offering, the investor will buy either 26,666,666 common shares or the lesser of a number of shares equal to the quotient obtained by dividing 20,000,000 by the 20 day volume weighted average price of the company’s stock during the 20 consecutive trading day period beginning on the last trading date prior to the settlement date or 26,666,666 shares.
Clairemont also will receive a right of first refusal to purchase a company franchise in Missouri City, Texas.
Proceeds will be used for working capital purposes.
The professional spring football league is based in Lakewood Ranch, Fla.
| Issuer: | Major League Football Inc.
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| Issue: | Common stock
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| Amount: | $20 million
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| Warrants: | No
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| Investor: | Clairemont Private Investment Group, LLC
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| Pricing date: | Oct. 20
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| Settlement date: | Feb. 1
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| Stock symbol: | OTCBB: MLFB
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| Stock price: | $0.94 at close Oct. 19
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| Market capitalization: | $31.14 million
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