By Sheri Kasprzak
Atlanta, Feb. 7 - Multiband Corp. said it has closed a private placement of convertible preferred stock for $10 million.
The company sold series I convertible preferred stock to Mercator Advisory Group LLC through Monarch Pointe Fund Ltd., Mercator Momentum Fund LP, Mercator Momentum Fund III LP and other investors.
The preferreds pay annual dividends equal to a range between Prime rate plus 1,000 basis points during the first seven months and at Prime after that. The preferreds are convertible into common shares at $1.50 each.
The investors will also receive warrants for 7,142,858 shares at $1.57 and $1.73 each for three years.
HC Wainwright & Co. LLC was the placement agent in the offering.
Based in New Hope, Minn., Multiband provides voice, data and video systems and services to businesses, governments and multiple dwelling units. The company plans to use the proceeds for the expansion of its network.
| Issuer: | Multiband Corp.
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| Issue: | Series I preferred stock
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| Amount: | $10 million
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| Dividend: | Prime rate plus 1,000 basis for seven months, Prime thereafter
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| Conversion price: | $1.50
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| Warrants: | For 7,142,858 shares
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| Warrant expiration: | Three years
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| Warrant strike price: | $1.57 and $1.73
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| Placement agent: | HC Wainwright & Co. LLC
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| Investors: | Monarch Pointe Fund Ltd., Mercator Momentum Fund LP, Mercator Momentum Fund III LP
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| Settlement date: | Feb. 3
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| Stock price: | $1.47 at close Feb. 3
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