By Sheri Kasprzak
New York, Jan. 26 - Utix Group, Inc. said it has completed a private placement of preferred stock and warrants for $5,465,000.
Special Situations Fund III, LP; Special Situations Cayman Fund, LP; Special Situations Private Equity Fund, LP; Special Situations Fund III OP, LP; Palisades Master Fund LP; Geduld Capital; Trade Winds Fund Ltd.; Little Wing LP; Gary Palmer; and Richard Shanley bought 1,093 shares of the preferreds at $5,000 each.
The preferreds are convertible into common shares at $0.02 each.
The investors received warrants for up to 68,312,500 shares, exercisable at $0.04 each for five years.
The deal also comes with the option to buy another $2 million in series A preferreds and warrants under the same terms.
Along with the private placement, Utix said $4.9 million in debt was converted into common shares and warrants.
Connected to both the placement and the conversion, Utix will effect a one-for-100 reverse stock split.
Proceeds from the placement will be used for general corporate purposes.
In other news, Gerald Roth, the company's co-founding board member, has retired.
Boston-based Utix issues and markets prepaid gift tickets.
| Issuer: | Utix Group, Inc.
|
| Issue: | Series A convertible preferreds
|
| Amount: | $5,465,000
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| Shares: | 1,093
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| Price: | $5,000
|
| Conversion price: | $0.02
|
| Warrants: | For up to 68,312,500 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.04
|
| Investors: | Special Situations Fund III, LP; Special Situations Cayman Fund, LP; Special Situations Private Equity Fund, LP; Special Situations Fund III OP, LP; Palisades Master Fund LP; Geduld Capital; Trade Winds Fund Ltd.; Little Wing LP; Gary Palmer; and Richard Shanley
|
| Settlement date: | Jan. 20
|
| Stock symbol: | OTCBB: UTXG
|
| Stock price: | $0.04 at close Jan. 20
|
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