By Sheri Kasprzak
New York, July 12 - New Dragon Asia Corp. said it has wrapped a private placement of preferred stock for $6 million.
The company sold series A convertible preferred stock to Midsummer Investment Ltd. and TerraNova Capital Partners Inc.
The preferreds pay annual dividends at 7% and are convertible into a total of 6,315,789 class A common shares at $0.95 each.
The investors also received warrants for 3,157,895 class A common shares at $1.04 each. The warrants expire in six years.
TN Capital Equities, Ltd. was the placement agent.
The proceeds will be used for acquisitions, forming strategic alliances and for general corporate purposes.
New Dragon, based in Shenzhen, China, mills, sells and distributes flour- and soybean-derived products in China.
| Issuer: | New Dragon Asia Corp.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $6 million
|
| Dividends: | 7%
|
| Conversion price: | $0.95
|
| Conversion ratio: | Into 6,315,789 class A common shares
|
| Warrants: | For 3,157,895 shares
|
| Warrant expiration: | Six years
|
| Warrant strike price: | $1.04
|
| Placement agent: | TN Capital Equities, Ltd.
|
| Investors: | Midsummer Investment Ltd. and TerraNova Capital Partners Inc.
|
| Settlement date: | July 11
|
| Stock price: | $1.04 at close July 11
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
