Deal sells 5 million shares to fund debt repayment, corporate purposes
By Devika Patel
Knoxville, Tenn., July 30 - RMG Networks Holding Corp. said it priced a $40 million public offering of stock with a $6 million greenshoe. The deal was announced July 15.
The company will sell 5 million common shares at $8.00 per share. The price per share is a 20% discount to the July 29 closing share price of $10.00.
Roth Capital Partners is the sole book running manager.
Settlement is expected Aug. 2.
Proceeds will be used to repay debt and for general corporate purposes, which may include the funding of growth initiatives in sales and marketing, capital expenditures, working capital and/or strategic acquisitions.
Based in Plano, Texas, the company provides digital signage solutions.
| Issuer: | RMG Networks Holding Corp.
|
| Issue: | Common stock
|
| Amount: | $40 million
|
| Greenshoe: | $6 million
|
| Shares: | 5 million
|
| Price: | $8.00
|
| Warrants: | No
|
| Bookrunner: | Roth Capital Partners
|
| Co-manager: | Northland Capital Markets
|
| Announcement date: | July 15
|
| Pricing date: | July 30
|
| Settlement date: | Aug. 2
|
| Stock symbol: | Nasdaq: RMGN
|
| Stock price: | $10.00 at close July 29
|
| Market capitalization: | $154.82 million
|
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