Series B-2 redeemable preferred stock sold with 40% warrant coverage
By Devika Patel
Knoxville, Tenn., Jan. 29 - Fusion Telecommunications International, Inc. completed a $4.36 million second and final tranche of a $20.8 million private placement of series B-2 redeemable preferred stock on Jan. 24, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company sold preferreds at $1,000.00 apiece, with 4,358 preferreds sold in the final tranche. The 6% preferreds are convertible into common stock at $0.10 per share, a 16.67% discount to the Jan. 23 closing share price of $0.12. The company may force conversion.
Investors also received 40% warrant covereage, with warrants for 13,945,600 shares issued in the second tranche. The five-year warrants are each exercisable at $0.125, which is a 4.17% premium to the Jan. 23 closing share price.
Proceeds will be used for general corporate purposes.
Fusion is a telecommunications company based in New York.
| Issuer: | Fusion Telecommunications International, Inc.
|
| Issue: | Series B-2 cumulative convertible preferred stock
|
| Amount: | $20.8 million
|
| Price: | $1,000.00
|
| Dividends: | 6%
|
| Conversion price: | $0.10
|
| Call: | Yes
|
| Warrants: | 40% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.125
|
| Settlement date: | Jan. 24 (for $4,358,000)
|
| Stock symbol: | OTCBB: FSNN
|
| Stock price: | $0.12 at close Jan. 23
|
| Market capitalization: | $31.93 million
|
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