By Devika Patel
Knoxville, Tenn., Feb. 22 - Elandia International Inc. has negotiated a $40 million private placement of preferred stock with Stanford International Bank Ltd., the company's principal stockholder, according to an 8-K filed Friday with the Securities and Exchange Commission.
Stanford International agreed to buy up to 5,925,926 shares of Elandia's series B convertible preferred stock along with warrants for 4,158,000 common shares. The warrants are exercisable for seven years at $0.001 per share.
The preferreds are convertible into common stock at $6.75 per common share.
The stock will be bought in increments of $2 million on a weekly basis for 20 weeks, with the first increment to be bought within the first week after Pedro Rafael Pizarro is appointed Elandia's chief executive officer.
Proceeds will be used for acquisitions, to augment Elandia's product portfolio and for general working capital needs.
In consideration for the placement, Stanford Group Co., an affiliate of Stanford International, will be paid $250,000.
Based in Fort Lauderdale, Fla., Elandia invests in telecommunications and information technology companies in emerging markets.
| Issuer: | Elandia International Inc.
|
| Issue: | Preferred stock
|
| Amount: | $40 million
|
| Shares: | 5,925,926
|
| Conversion price: | $6.75 per common share
|
| Warrants: | For 4,158,000 shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.001
|
| Investor: | Stanford International Bank Ltd.
|
| Fees: | $250,000
|
| Pricing date: | Feb. 20
|
| Stock symbol: | OTCBB: ELAN
|
| Stock price: | $0.35 at close Feb. 20
|
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