Series A redeemable 6.5% preferreds sold along with 10-year warrants
By Devika Patel
Knoxville, Tenn., Oct. 11 - Marlborough Software Development Holdings Inc. settled a $2 million private placement of series A redeemable convertible preferred stock on Oct. 10, according to an 8-K filed Thursday with the Securities and Exchange Commission. It may raise an additional $1.5 million in the deal.
The 597,014 preferreds were sold in units at a purchase price of $3.35 per unit, with each unit consisting of one 6.5% preferred and warrants for five shares.
The warrant is exercisable at $0.67 for 10 years. The strike price is a 139.29% premium to the Oct. 9 closing share price of $0.28.
Amos Kaminski and Altshuler Shaham Group were the investors.
Marlborough is a software development company in Marlborough, Mass.
| Issuer: | Marlborough Software Development Holdings Inc.
|
| Issue: | Units of one series A redeemable preferred share and warrants for five shares
|
| Amount: | $2 million
|
| Units: | 597,014
|
| Price: | $3.35
|
| Dividends: | 6.5%
|
| Warrants: | Warrants for five shares per unit
|
| Warrant expiration: | Ten years
|
| Warrant strike price: | $0.67
|
| Investor: | Amos Kaminski, Altshuler Shaham Group
|
| Settlement date: | Oct. 10
|
| Stock symbol: | OTCBB: MBGH
|
| Stock price: | $0.28 at close Oct. 9
|
| Market capitalization: | $4.09 million
|
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