By Sheri Kasprzak
New York, Jan. 18 - Medical Staffing Solutions, Inc. said it completed a $3 million private placement of series A convertible preferred stock.
The preferreds were purchased by Cornell Capital Partners, LP.
The preferreds are convertible into common shares at a price equal to 95% of the lowest volume-weighted average price of the company's stock for the 30 trading days before conversion.
Cornell also received warrants for 15 million shares, exercisable at $0.03 each for five years.
Also, Medical Staffing terminated a $15 million standby equity distribution agreement with Cornell. The agreement was secured on March 10, 2004. Under the terms of the SEDA, Cornell had the option to buy shares from Medical Staffing at the lowest closing stock price for the five trading days before notice of a draw.
Based in Vienna, Va., Medical Staffing Solutions provides health-related staffing services to government agencies.
| Issuer: | Medical Staffing Solutions, Inc.
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| Issue: | Series A convertible preferred stock
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| Amount: | $3 million
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| Conversion price: | 95% of the lowest volume-weighted average price for the 30 trading days before conversion
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| Warrants: | For 15 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.03
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| Investor: | Cornell Capital Partners, LP
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| Settlement date: | Dec. 13
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| Stock symbol: | OTCBB: MSSI
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| Stock price: | $0.03 at close Dec. 13
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| Stock price: | $0.0235 at close Jan. 18
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