Deal sells common shares and five-year warrants via bookrunner Aegis
By Devika Patel
Knoxville, Tenn., Nov. 18 - InterCloud Systems, Inc. said it settled a public offering of stock, raising about $5.75 million, on Nov. 15. The deal was announced Aug. 5, priced for $5 million with a $750,000 greenshoe on Oct. 30 and the greenshoe was exercised in part on Nov. 5 for proceeds of about $5 million.
The company sold common shares at $4.00 per share. Investors also received warrants. The warrants are each exercisable at $5.00 for five years.
The strike price is a 15.83% discount to the Oct. 29 closing share price of $5.94. The price per common share is a 32.66% discount to that price.
Aegis Capital Corp. was the bookrunning manager.
Approximately $18.2 million of the proceeds will be used to complete the company's planned acquisition of Integration Partners-NY Corp., with the remainder used for working capital and general corporate purposes.
Based in Boca Raton, Fla., the company is an end-to-end solution provider of cloud and managed service-based platforms, professional services, applications and infrastructure to the telecommunications industry and corporate enterprises.
| Issuer: | InterCloud Systems, Inc.
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| Issue: | Common stock
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| Amount: | $5.75 million (approximate)
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| Price: | $4.00
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| Warrants: | Yes
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| Warrant expiration: | Five years
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| Warrant strike price: | $5.00
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| Bookrunner: | Aegis Capital Corp.
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| Announcement date: | Aug. 5
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| Pricing date: | Oct. 30
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| Settlement dates: | Nov. 5, Nov. 15
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| Stock symbol: | OTCBB: ICLD
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| Stock price: | $5.94 at close Oct. 29
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| Market capitalization: | $79.36 million
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