Brokered deal sells units of preferreds and warrants at $0.65 per unit
By Devika Patel
Knoxville, Tenn., July 24 - Motricity, Inc. plans to raise $28 million of net proceeds through a public rights offering of preferred units, according to a prospectus filed Tuesday with the Securities and Exchange Commission. American Stock Transfer & Trust Co., LLC is the agent.
The company will sell preferred units at $0.65 per unit, with each unit consisting of 0.02599 12% redeemable series J preferred shares and 0.30861 warrants. The whole warrants are each exercisable at $0.51, which is identical to the July 23 closing share price.
The company plans to sell a total of 1.2 million preferreds and 14,248,741 warrants.
Proceeds will be used to repay up to $5 million of debt under the company's revolving loan facility with High River LP and for general corporate and working capital purposes.
Based in Bellevue, Wash., Motricity provides a suite of hosted, managed service offerings, including mobile Web portal, storefront, messaging, and billing support and settlement, which enable wireless carriers to deliver customized, carrier-branded mobile data services to their wireless subscribers.
| Issuer: | Motricity, Inc.
|
| Issue: | Units 0.02599 12% redeemable series J preferred shares and 0.30861 warrants
|
| Amount: | $28 million (net)
|
| Price: | $0.65
|
| Warrants: | 0.30861 warrants per unit (a total of 14,248,741 warrants)
|
| Warrant strike price: | $0.51
|
| Agent: | American Stock Transfer & Trust Co., LLC
|
| Pricing date: | July 24
|
| Stock symbol: | Nasdaq: MOTR
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| Stock price: | $0.51 at close July 23
|
| Market capitalization: | $22.54 million
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