91 investors sign on for convertible preferred stock and warrants
By Susanna Moon
Chicago, Oct. 26 - Fusion Telecommunications International, Inc. entered into subscription agreements with 91 accredited investors between Oct. 22 and Oct. 24 for $6,027,750 of investment units consisting of convertible preferred stock and warrants, according to an 8-K filing with the Securities and Exchange Commission.
The company sold 6,027.75 investment units consisting of the following:
• 6,027.75 shares of newly designated series B-1 cumulative convertible preferred stock;
• Fixed warrants for 22,013,915 shares exercisable for five years; and
• Contingent warrants for 11,006,958 shares.
The preferreds are convertible into a number of common shares equal to the stated value divided by the volume-weighted-average price of the company's stock for the 10 trading days prior to the closing, or into 55,034,647 total shares.
The company may force conversion on the later of the share authorization date or April 24, 2013.
In addition, cumulative dividends at rates ranging from 8% per year to 12% per year are payable on the outstanding series B-1 preferreds if the share authorization has not occurred by Oct. 24, 2013.
Bradley Woods & Co., Ltd. is the lead manager and placement agent.
Fusion is a telecommunications company based in New York.
| Issuer: | Fusion Telecommunications International, Inc.
|
| Issue: | Investment units consisting of 6,027.75 shares of series B-1 cumulative convertible preferred stock, fixed warrants and contingent warrants
|
| Amount: | $6,027,750
|
| Conversion ratio: | Into a number of common shares equal to the stated value divided by the volume-weighted-average price of the company's stock for the 10 trading days prior to the closing, or into 55,034,647 total shares
|
| Warrants: | Fixed warrants for 22,013,915 shares and contingent warrants for 11,006,958 shares
|
| Warrant expiration: | Five years for fixed warrants
|
| Manager: | Bradley Woods & Co., Ltd.
|
| Pricing date: | Oct. 26
|
| Stock symbol: | Pink sheets: FSNN
|
| Stock price: | $0.13 at close Oct. 25
|
| Market capitalization: | $22.97 million
|
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