By Sheri Kasprzak
Atlanta, Jan. 25 - AB Watley Group Inc. has closed a private placement of stock for $2 million.
The company sold 5 million shares at $0.40 each.
So far, the company has received $1 million from the offering, and the remainder is expected to be received in quarterly installments through April 1.
The private placement is part of the company's debt-reduction plan. In fiscal year 2004, the company reduced its total liabilities and preferred stock by $13.5 million from $29.4 million.
Holders of $6,867,001 in series A redeemable convertible preferred stock, including dividends and interest, exchanged the preferreds for warrants to buy 6,242,729 common shares at $0.01 each for seven years.
Some of the company's note holders forgave notes, including interest, equal to $1,102,500 in exchange for warrants to buy 987,771 shares at $0.01 each for seven years.
Some note holders have agreed to forgive notes equal to $2,725,321 in exchange for 1 million shares.
The company has also placed the exercise price for common shares received upon the exercise of warrants at $0.19.
The company has decreased an existing warrant agreement with a note holder, for 1 million shares, to $0.01 from $0.918.
All the company's warrants will now have a seven-year term.
AB Watley is a New York-based financial services holding company.
| Issuer: | AB Watley Group Inc.
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| Issue: | Stock
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| Amount: | $2 million
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| Shares: | 5 million
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| Price: | $0.40
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| Warrants: | No
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| Announcement date: | Jan. 25
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| Stock price: | $0.22 at close Jan. 24
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