By Sheri Kasprzak
Atlanta, April 15 - RCG Cos. Inc. said it has completed a private placement for $31,110,165.
The company sold 311.10165 shares of series C convertible preferred stock to 12 institutional investors at $100,000 each.
The preferreds are convertible into common shares at $0.55 each and do not pay dividends. If the preferreds are not converted into common shares, the company must redeem them within one year.
The investors also received warrants for two common shares for every five shares issuable upon conversion. The warrants are exercisable at $0.55 each for five years.
In connection with the private placement, RCG redeemed all of its outstanding convertible debentures issued in February for $8,765,570 and also redeemed a $1,098,500 note issued in January.
The remaining proceeds will be used to finance the company's acquisition of OneTravel Inc. and for working capital.
Based in Charlotte, N.C., RCG is a holding company for travel business subsidiaries, which sell vacation travel packages.
| Issuer: | RCG Cos. Inc.
|
| Issue: | Series C convertible preferred stock
|
| Amount: | $31,110,165
|
| Shares: | 311.10165
|
| Price: | $100,000
|
| Conversion price: | $0.55
|
| Call: | Must be redeemed within one year if not converted
|
| Warrants: | For two shares for every five shares issuable upon conversion
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.55
|
| Settlement date: | April 15
|
| Stock price: | $0.76 at close April 14
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