By Sheri Kasprzak
Atlanta, Nov. 16 - Multiband Corp. said Tuesday it has received commitments for $2.1 million in convertible promissory notes and has also received $1.05 million through the sale of convertible preferred stock.
The notes pay interest at 6% per year and are convertible into common shares at $1 per share.
The company also sold $1.05 million in series H convertible preferred stock.
The preferreds pay a dividend of 6% per year and are convertible into common shares at $1 per share.
The investors of the series H shares will also receive warrants for an additional 3.15 million common shares at $1.25 each for five years.
H.C. Wainwright & Co. acted as placement agent in both the offerings.
Based in Minneapolis, Multiband is a voice, data and video systems provider to apartment buildings and time-share resorts. The company plans to use the proceeds from the financings to restructure existing short-term debt and for general working capital.
| Issuer: | Multiband Corp.
|
| Issue: | Convertible promissory notes
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| Amount: | $2.1 million
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| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | $1
|
| Placement agent: | H.C. Wainwright & Co.
|
| Announcement date: | Nov. 16
|
|
|
| Series H shares
|
| Issue: | Series H convertible preferred stock
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| Amount: | $1.05 million
|
| Dividend: | 6%
|
| Conversion price: | $1
|
| Warrants: | For 3.15 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.25
|
| Placement agent: | H.C. Wainwright & Co.
|
| Announcement date: | Nov. 16
|
| Stock price: | $1.18 at close Nov. 16
|
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