Dawson James assists with offering, which includes five-year warrants
By Devika Patel
Knoxville, Tenn., June 11 - Elephant Talk Communications Corp. said it increased a registered direct offering of shares to $12 million from $10.5 million. The deal priced on June 3. The company also said it plans to redeem all of its 8% senior secured convertible notes for about $6.7 million.
The company will sell 10,997,067 common shares at $0.682 per share and 6,428,571 shares at $0.70 per share. The prices per share are 7.84% and 5.41% discounts to the May 31 closing share price of $0.74.
Investors also will receive warrants for 7,841,537 common shares. The warrants are exercisable at $0.887 for five years. The strike price reflects a 19.87% premium to the May 31 closing share price.
Dawson James Securities, Inc. is the agent. Chief executive officer Steven van der Velden will invest $4.5 million and Crede CG III. Ltd. will invest $5 million.
Settlement is expected June 14.
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: | $12 million
|
| Shares: | 17,425,638
|
| Price: | $0.682, $0.70
|
| Warrants: | For 7,841,537 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.887
|
| Agents: | Dawson James Securities, Inc.
|
| Investor: | Steven van der Velden (for $4.5 million), Crede CG III. Ltd. (for $5 million)
|
| Pricing date: | June 3
|
| Upsized: | June 11
|
| Settlement date: | June 14
|
| Stock symbol: | NYSE: ETAK
|
| Stock price: | $0.74 at close May 31
|
| Market capitalization: | $79.36 million
|
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