Company sells stock at $3.00 per share to fund working capital
By Devika Patel
Knoxville, Tenn., June 1 - Multiband Corp. said it settled a $38.64 million public offering of common stock. The deal priced for $33.6 million with a $5.04 million greenshoe, which was fully exercised, on May 26.
The company sold 12.88 million shares at $3.00 each. Of the shares, Multiband sold 5,974,932 shares and the selling shareholder sold 6,905,068 shares; 1.68 million shares were part of the fully exercised greenshoe.
The price per share is a 5.66% discount to the company's $3.18 closing share price on May 25.
Craig-Hallum Capital Group was the bookrunner, and Northland Capital Markets was co-manager.
Multiband plans to use its proceeds for working capital and other general corporate purposes, including potential future acquisitions and the redemption of its 15% class E cumulative preferred stock, which is currently owned by two of its directors, for about $1.95 million.
Minneapolis-based Multiband is a home service provider for DirecTV.
| Issuer: | Multiband Corp.
|
| Issue: | Common stock
|
| Amount: | $38.64 million (including $5.04 million greenshoe exercise)
|
| Shares: | 12.88 million
|
| Price: | $3.00
|
| Warrants: | No
|
| Bookrunner: | Craig-Hallum Capital Group
|
| Co-manager: | Northland Capital Markets
|
| Pricing date: | May 26
|
| Settlement date: | June 1
|
| Stock symbol: | Nasdaq: MBND
|
| Stock price: | $3.18 at close May 26
|
| Market capitalization: | $33.32 million
|
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