By Devika Patel
Knoxville, Tenn., Nov. 13 - Nexxus Lighting, Inc. completed a $7.57 million private placement of its series A convertible preferred stock on Nov. 11, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The preferreds were sold in exchange for cash and the settlement of debt.
The company sold the preferreds in units. Each $5,000 unit consists of one preferred and a warrant for 750 common shares. The company sold about 1,500 units.
The warrants are exercisable at $6.50 for three years. The company issued a total of 1,135,083 warrants.
The 8% preferred stock is redeemable at any time. It is convertible into common shares at any time after four years at the greater of $6.59 or the market value of the company's stock on the conversion date.
Charlotte, N.C.-based Nexxus designs, manufactures, markets and sells new light-emitting diode lighting products and systems.
| Issuer: | Nexxus Lighting, Inc.
|
| Issue: | Units of one series A convertible preferred share and one warrant for 750 common shares
|
| Amount: | $7,567,230
|
| Units: | 1,500 (approximately)
|
| Price: | $5,000
|
| Warrants: | One warrant for 750 shares per unit (1,135,083 warrants total)
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $6.50
|
| Settlement date: | Nov. 11
|
| Stock symbol: | Nasdaq: NEXS
|
| Stock price: | $6.96 at close Nov. 11
|
|
|
| Preferreds
|
| Dividends: | 8%
|
| Conversion price: | Greater of $6.59 or market value of the company's stock on conversion date
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