Company has sold 40,450 12.5% series A preferreds thus far
By Devika Patel
Knoxville, Tenn., April 12 - Absolute Life Solutions, Inc. completed a $7.5 million tranche of a $60 million private placement of series A convertible preferred stock on April 7, according to an 8-K filed Tuesday with the Securities and Exchange Commission. Among the closings, the company raised $5 million on July 21, 2010 and $20.8 million on Nov. 15, 2010; it has thus far raised $40.45 million.
The company is selling 60,000 12.5% preferreds overall at $1,000.00 apiece. It sold 5,000 preferreds in the first tranche, 20,800 preferreds in the second and 7,500 preferreds in the most recent tranche. The preferreds are convertible into common stock at $1.00 per share.
The investors also will receive warrants for 60 million shares. Half of the warrants are exercisable at $2.00. The remaining warrants are exercisable at $4.00.
The strike prices are identical and a 100% premium to the July 21 closing share price of $2.00. The conversion price is a 50% discount to that price.
To date, the company has sold 40,450 preferreds.
Absolute Life Solutions, formerly Shimmer Gold, Inc., is a specialty financial services company in New York.
| Issuer: | Absolute Life Solutions, Inc.
|
| Issue: | Series A convertible preferred stock
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| Amount: | $60 million ($40.45 million raised so far)
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| Shares: | 60,000
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| Price: | $1,000.00
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| Conversion price: | $1.00
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| Dividends: | 12.5%
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| Warrants: | For 60 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $2.00 (50% of the warrants), $4.00 (50% of the warrants)
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| Settlement date: | July 21 (for $5 million), Nov. 15 (for $20.8 million), April 7 (for $7.5 million)
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| Stock symbol: | OTCBB: ALSO (formerly OTCBB: SMGN)
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| Stock price: | $2.00 at close July 21, 2010
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| Market capitalization: | $169.06 million
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