By Laura Lutz
Des Moines, Nov. 15 - IXI Mobile, Inc. plans to close a second tranche of its previously announced private placement of stock, increasing the deal size to $9.73 million, according to an 8-K filing with the Securities and Exchange Commission.
In the same filing, IXI said it received a $5 million equity line of credit agreement from Tailor-Made Capital Ltd.
In total, the $9.73 million placement is expected to consist of 2,703,000 common shares at $3.60 each and warrants for 1,621,800 shares.
The second tranche will include 1.28 million shares and warrants for 768,000 shares. The first tranche, which was announced on Oct. 25, included 1,423,000 shares and warrants for 853,800 shares.
The warrants are exercisable at $4.10 per share for five years.
Settlement of the second tranche is expected within two weeks.
Under the equity line, IXI may require Tailor-Made to buy shares of its stock at a discount to the market price of between 5% and 10%. To sell any stock, IXI is required have an effective registration statement for the resale of the shares.
The agreement will remain in effect until the earlier of Nov. 10, 2010 and two years after the date that the registration statement is declared effective.
As a commitment fee, IXI issued 75,000 shares and a five-year warrant for 312,500 shares to Tailor-Made. The warrant has a strike price of $4.10.
IXI is a mobile technology company based in Redwood City, Calif.
Stock placement
| Issuer: | IXI Mobile, Inc.
|
| Issue: | Stock
|
| Amount: | $9,730,800
|
| Shares: | 2,703,000
|
| Price: | $3.60
|
| Warrants: | For 768,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $4.10
|
| Announcement date: | Oct. 25 (for $5,122,800); Nov. 15 (for $4,608,000)
|
| Stock symbol: | OTCBB: IXMO
|
| Stock price: | $4.18 at close Oct. 25
|
|
|
| Equity line
|
| Issuer: | IXI Mobile, Inc.
|
| Issue: | Equity line of credit
|
| Amount: | $5 million
|
| Term: | Until earlier of Nov. 10, 2010 and two years after registration statement is declared effective
|
| Price: | 5% to 10% discount to market price
|
| Shares: | 75,000 (commitment fee)
|
| Warrants: | For 312,500 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $4.10
|
| Investor: | Tailor-Made Capital Ltd.
|
| Settlement date: | Nov. 11
|
| Stock symbol: | OTCBB: IXMO
|
| Stock price: | $3.90 at close Nov. 9
|
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