Deal sells 34,285,728 shares at $0.35 apiece with five-year warrants
By Devika Patel
Knoxville, Tenn., Feb. 19 - Izea Inc. offered further details about its $12 million private placement of stock in an 8-K filed Wednesday with the Securities and Exchange Commission. Craig-Hallum Capital Group is the agent for the deal, which priced on Feb. 12.
The company will sell 34,285,728 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 34,285,728 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.
Settlement is expected Feb. 21.
Izea is an Orlando, Fla., company that connects social media publishers with advertisers.
| Issuer: | Izea Inc.
|
| Issue: | Common stock
|
| Amount: | $12 million
|
| Shares: | 34,285,728
|
| Price: | $0.35
|
| Warrants: | For 34,285,728 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.35 (for 17,142,864 shares), $0.50 (for 17,142,864 shares)
|
| Agent: | Craig-Hallum Capital Group
|
| Investor: | Special Situations Funds
|
| Pricing date: | Feb. 12
|
| Settlement date: | Feb. 21
|
| Stock symbol: | OTCBB: IZEA
|
| Stock price: | $0.66 at close Feb. 11
|
| Market capitalization: | $13.66 million
|
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