Series B preferreds sold with five-year warrants for 5,625,000 shares
By Devika Patel
Knoxville, Tenn., July 27 – Nxt-ID, Inc. arranged a $4.5 million private placement of 25% series B convertible preferred stock on July 25, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company will sell 4.5 million preferreds at $1.00 apiece. Each preferred is convertible into common stock at $0.40 per share, which is an 18.37% discount to the July 22 closing share price of $0.49. The company may force conversion.
Investors also will receive warrants for 5,625,000 shares, which are each exercisable at $0.75 for five years. The strike price is a 53.06% premium to the July 22 closing price.
The Oxford, Conn., company offers security solutions for mobile devices.
| Issuer: | Nxt-ID, Inc.
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| Issue: | Series B convertible preferred stock
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| Amount: | $4.5 million
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| Preferreds: | 4.5 million
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| Price: | $1.00
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| Dividends: | 25%
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| Conversion price | : | $0.40
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| Conversion premium: | 3.45%
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| Call: | Yes
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| Warrants: | For 5,625,000 shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.75
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| Pricing date: | July 25
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| Stock symbol: | Nasdaq: NXTD
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| Stock price: | $0.49 at close on July 22
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| Market capitalization: | $29.33 million
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