By Laura Lutz
Des Moines, Nov. 28 - Elandia International Inc. arranged a $35 million private placement of preferred stock with Stanford International Bank Ltd., the company's principal stockholder, according to an 8-K filing with the Securities and Exchange Commission.
Stanford International agreed to buy up to 5,185,184 shares of Elandia's series B convertible preferred stock along with warrants for 3,638,000 common shares. The warrants are exercisable for five years at $0.001 per share.
Elandia plans to close the placement in multiple tranches.
The first seven tranches will raise $32 million, ending on Dec. 28. Those tranches will include 4,740,740 shares and all of the warrants.
Stanford International will invest an additional $3 million in 2008 in exchange for 444,444 more shares.
The preferreds are convertible into common stock at $6.75 per common share.
Up to $6 million of the proceeds will be used for working capital. The rest will be used for Elandia's acquisition of a majority interest in Desca Holding, LLC.
In consideration for the placement, Stanford Group Co., an affiliate of Stanford International, received $2.48 million and five-year warrants for 259,259 shares of Elandia. Those warrants are exercisable at $6.75 per share.
Based in Fort Lauderdale, Fla., Elandia invests in telecommunications and information technology companies in emerging markets.
| Issuer: | Elandia International Inc.
|
| Issue: | Preferred stock
|
| Amount: | $35 million
|
| Shares: | 5,185,184
|
| Warrants: | For 3,638,000
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.001
|
| Investor: | Stanford International Bank Ltd.
|
| Pricing date: | Nov. 21
|
| Stock symbol: | OTCBB: ELANE
|
| Stock price: | $0.60 at close Nov. 21
|
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