Deal sells 5.6 million shares at $0.35 apiece with five-year warrants
By Devika Patel
Knoxville, Tenn., Feb. 12 - Izea Inc. said it plans a $12 million private placement of stock. Craig-Hallum Capital Group is the agent.
The company will sell about 34.2 million common shares at $0.35 per share, a 46.97% discount to the closing share price, $0.66, on Feb. 11.
Investors will also receive five-year warrants for approximately 34.2 million shares. Half of the warrants are exercisable at $0.35, with the remainder exercisable at $0.50. The strike prices are 46.97% and 24.24% discounts to the Feb. 11 closing price.
Special Situations Funds will be among the investors.
Izea is an Orlando, Fla., company that connects social media publishers with advertisers.
| Issuer: | Izea Inc.
|
| Issue: | Common stock
|
| Amount: | $12 million
|
| Shares: | 34.2 million (approximate)
|
| Price: | $0.35
|
| Warrants: | For about 34.2 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.35, $0.50
|
| Agent: | Craig-Hallum Capital Group
|
| Investor: | Special Situations Funds
|
| Pricing date: | Feb. 12
|
| Stock symbol: | OTCBB: IZEA
|
| Stock price: | $0.66 at close Feb. 11
|
| Market capitalization: | $10.41 million
|
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