Offer included warrants for 7,092,952 shares, not 6,808,279 shares
By Devika Patel
Knoxville, Tenn., July 27 – Function (X) Inc. incorrectly reported the number of warrants included in a $4.44 million private placement of 10% convertible debentures, according to an 8-K filed Wednesday with the Securities and Exchange Commission. Aegis Capital Corp. was the agent for the deal, which settled on July 12.
Investors received five-year warrants for 7,092,952 shares, not 6,808,279 shares as reported on July 13.
As previously reported, each warrant is exercisable at $0.3264, a 30.56% premium to the July 11 closing share price.
The notes mature in one year and will initially convert to common shares at $0.3133 per share, which is a 25.32% premium to the July 11 closing share price of $0.25. The notes may be redeemed at 120.
Proceeds will be used for general business and working capital purposes and debt repayment.
New York's Function (X) provides database management services and website design and maintenance for national not-for profit, health care and publishing entities.
| Issuer: | Function (X) Inc.
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| Issue: | Convertible debentures
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| Amount: | $4,444,444
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| Maturity: | One year
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| Coupon: | 10%
|
| Conversion price: | $0.3133
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| Conversion premium: | 25.32%
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| Call: | At 120
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| Warrants: | For 7,092,952 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.3264
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| Agent: | Aegis Capital Corp.
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| Settlement date: | July 12
|
| Stock symbol: | Nasdaq: FNCX
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| Stock price: | $0.25 at close July 11
|
| Market capitalization: | $12.49 million
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