Published on 6/17/2008 in the Prospect News PIPE Daily.
New Issue: MTM secures $3 million from sale of promissory notes
By Devika Patel
Knoxville, Tenn., June 17 - MTM Technologies, Inc. completed a $3 million private placement of promissory notes, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
Pequot Private Equity Fund III, LP invested $2,410,235 on June 11 and $219,112 on June 16. Pequot Offshore Private Equity Partners III, LP invested $339,765 on June 11 and $30,888 on June 16.
The notes mature on the Dec. 15, 2009.
They bear interest at 8.5% per year. Interest on the June 11 notes is payable in cash or shares at the company's option; interest on the June 16 notes is payable in shares.
Pequot Private Equity also received warrants for 642,729 shares of the company's next series of preferred stock on June 11 and for 56,545 shares of the company's next series of preferred stock on June 16. Pequot Offshore received warrants for 90,604 shares of the company's next series of preferred stock on June 11 and for 7,971shares of the company's next series of preferred stock on June 16.
The June 11 warrants are exercisable at $0.375 until June 11, 2012 and the June 16 warrants are exercisable at $0.3875 until June 16, 2012.
Based in Stamford, Conn., MTM provides internet technology solutions to mid-sized companies.
| Issuer: | MTM Technologies, Inc.
|
| Issue: | Promissory notes
|
| Amount: | $3 million
|
| Maturity: | Dec. 15, 2009
|
| Coupon: | 8.5%, payable in cash or shares (for $2.75 million), payable in shares (for $250,000)
|
| Price: | Par
|
| Yield: | 8.5%
|
| Warrants: | For 797,849 shares
|
| Warrant expiration: | June 11, 2012 (for 733,333 shares), June 16, 2012 (for 64,516 shares)
|
| Warrant strike price: | $0.375 (for 733,333 shares), $0.3875 (for 64,516 shares)
|
| Investors: | Pequot Private Equity Fund III, LP (for $2,629,347); Pequot Offshore Private Equity Partners III, LP (for $370,653)
|
| Settlement date: | June 11 (for $2.75 million), June 16 (for $250,000)
|
| Stock symbol: | Nasdaq: MTMC
|
| Stock price: | $0.30 at close June 11
|
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