Company sells 1 million 8% preferreds at $5 each to two shareholders
By Toni Weeks
San Luis Obispo, Calif., Jan. 13 - Pernix Group, Inc. said it issued $5 million of 8% series A cumulative convertible preferred stock in a private placement with its two largest shareholders.
The company sold 1 million preferreds at $5.00 each. Emil Continental, SA, BVI purchased 550,000 shares, and Halbarad Group, Ltd., BVI purchased 450,000 shares.
Each preferred is convertible into 1.43 shares of Pernix Group common stock, correlating to a conversion price of $3.50 per share, a 16.67% premium to the closing share price of $3.00 on Jan. 10.
The company said the private placement gives it additional liquidity to support its growth initiatives, including expanding its power generation business both domestically and overseas, forming new joint ventures and completing potential acquisitions in both operating segments of the company. Pernix also announced it repaid about $2.3 million of debt and now has no debt outstandig.
Lombard, Ill.-based Pernix is engaged in two primary operating business segments: construction services as a design-build general contractor in the federal and government market as well as building, managing and investing in power generation projects as an independent power producer.
| Issuer: | Pernix Group, Inc.
|
| Issue: | Series A cumulative convertible preferred stock
|
| Amount: | $5 million
|
| Shares: | 1,000,000
|
| Price: | $5.00
|
| Coupon: | 8%
|
| Conversion price: | $3.50
|
| Conversion rate: | Each preferred convertible into 1.43 common shares
|
| Conversion premium: | 16.67%
|
| Warrants: | No
|
| Investors: | Emil Continental, SA, BVI (for $550,000) and Halbarad Group, Ltd., BVI (for $450,000)
|
| Agreement date: | Jan. 10
|
| Stock symbol: | OTCBB: PRXG
|
| Stock price: | $3.00 at close Jan. 10
|
| Market capitalization: | $28.21 million
|
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