Dawson James assists with offering, which includes five-year warrants
By Devika Patel
Knoxville, Tenn., June 3 - Elephant Talk Communications Corp. will conduct a $10.5 million registered direct offering of shares, according to a prospectus supplement filed Monday with the Securities and Exchange Commission.
The company will sell 14 million common shares at $0.75 per share. The price per share is a 1.35% premium to the May 31 closing share price of $0.74.
Investors also will receive warrants for 6.3 million common shares. The warrants are exercisable at $0.975 for five years. The strike price reflects a 31.76% premium to the May 31 closing share price.
Dawson James Securities, Inc. is the agent. Chief executive officer Steven van der Velden will invest $3 million.
Settlement is expected June 6.
Proceeds will be used for working capital and other general corporate purposes, including repayment of the company's senior secured convertible notes and acquisitions.
The provider of mobile networking software and services is based in Oklahoma City.
| Issuer: | Elephant Talk Communications Corp.
|
| Issue: | Common shares
|
| Amount: | $10.5 million
|
| Shares: | 14 million
|
| Price: | $0.75
|
| Warrants: | For 6.3 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.975
|
| Agent: | Dawson James Securities, Inc.
|
| Investor: | Steven van der Velden (for $3 million)
|
| Pricing date: | June 3
|
| Settlement date: | June 6
|
| Stock symbol: | NYSE: ETAK
|
| Stock price: | $0.74 at close May 31
|
| Market capitalization: | $89.55 million
|
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