By Devika Patel
Knoxville, Tenn., March 11 - Modtech Holdings, Inc. said it raised $1.64 million in a private placement of preferred stock.
The company sold 14,190 shares of series B preferreds and 2,256 shares of series C preferreds, both at $100 per share.
The series B preferred stock is convertible at any time into 4,007,908 common shares at $0.40 per share and accrues dividends at 8% per year, payable in additional series B preferred shares. It is redeemable by the company at any time after the closing price of the company's common stock is $2.00 or more for 20 consecutive trading days.
The series C preferred stock is convertible at any time into common stock at $0.49 per share and does not accrue dividends.
Rodman & Renshaw Capital Group, Inc. was placement agent.
The buyers were existing shareholders Dolphin Offshore Partners, LP and Rodman & Renshaw Capital Group, Inc. and new investors GCA Strategic Investment Fund Ltd., Maythorpe Holdings Ltd., Thomas F. Peckosh, Jr. and Charles R. Skemp. Also buying were former director Charles R. Gwirtsman and current directors and executives Charles C. McGettigan, Myron A. Wick III, Daniel J. Donahoe III, Stanley Gaines, Dennis L. Shogren, Robert W. Campbell, Kenneth S. Cragun, Ronald Savona, Karen Andreasen, Richard Bartolotti, Harold Clark, Richard Von Hor, Thomas McGovern, Kenneth Keska, Jr. and Danny Ewing.
Proceeds will be used for working capital.
Based in Perris, Calif., Modtech designs and manufactures modular buildings.
| Issuer: | Modtech Holdings, Inc.
|
| Issue: | Series B preferred stock, series C preferred stock
|
| Amount: | $1,644,600
|
| Price: | $100
|
| Warrants: | No
|
| Pricing date: | March 10
|
| Settlement date: | March 11
|
| Placement agent: | Rodman & Renshaw Capital Group, Inc.
|
| Stock symbol: | Nasdaq: MODT
|
| Stock price: | $0.43 at close March 7
|
|
|
| Series B preferred stock
|
| Shares: | 14,190
|
| Coupon: | 8%, payable in series B preferred stock
|
| Conversion price: | $0.40
|
|
|
| Series C preferred stock
|
| Shares: | 2,256
|
| Conversion price: | $0.49
|
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