Deal with Pablo Enterprises also has $750,000 in insider investment
By Devika Patel
Knoxville, Tenn., Sept. 28 - Lenco Mobile Inc. plans a private placement of 107,500 series A convertible preferred shares, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal priced Sept. 23.
The private placement of $10.75 million was priced at $100 per preferred. Pablo Enterprises LLC is the lead investor for $10 million. Insiders will buy the remaining $750,000 in preferreds.
The 6% preferreds are convertible into common stock at $1.50 per share. The conversion price reflects a 60.63% discount to the Sept. 22 closing share price of $3.81.
"The $10 million investment enables us to increase the speed at which we expand internationally," Lenco's chief executive and president, Michael Levinsohn, said in a press release. "The demand for our services and solutions is particularly high right now, given that wireless carriers are increasingly reliant on data revenue to keep growing."
Lenco is a San Francisco-based developer of mobile phone and internet advertising platforms.
| Issuer: | Lenco Mobile Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $10.75 million
|
| Preferreds: | 107,500
|
| Price: | $100
|
| Dividends: | 6%
|
| Conversion price: | $1.50
|
| Warrants: | No
|
| Investor: | Pablo Enterprises LLC (for $10 million)
|
| Settlement date: | Sept. 23
|
| Stock symbol: | Pink Sheets: LNCM
|
| Stock price: | $3.49 at close Sept. 23
|
| Market capitalization: | $212.03 million
|
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