Company sells 250,000 preferreds at $100 apiece to fund debt repayment
By Devika Patel
Knoxville, Tenn., March 25 – RMG Networks Holding Corp. negotiated a $25 million sale of 12% series A convertible preferred stock on March 25, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company will sell 250,000 preferreds at $100 per preferred. Each peferred automatically converts into 100 common shares at $1.00 per share, which is a 33.78% discount to the March 24 closing price of $1.51.
Settlement is expected on March 27.
Investors include president, chief executive officer and board member Robert Michelson, executive vice president and chief operating officer Loren Buck, board member Alan Swimmer and White Knight Capital Management LLC.
The sale is conditional upon the company paying in full all interest and other amounts due under its senior credit agreement.
Based in Plano, Texas, the company provides digital signage solutions.
| Issuer: | RMG Networks Holding Corp.
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| Issue: | Series A convertible preferred stock
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| Amount: | $25 million
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| Preferreds: | 250,000
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| Price: | $100
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| Dividends: | 12%
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| Conversion price: | $1.00
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| Conversion ratio: | Into 100 common shares (per preferred)
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| Warrants: | No
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| Investors: | Robert Michelson, Loren Buck, Alan Swimmer, White Knight Capital Management LLC
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| Pricing date: | March 25
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| Settlement date: | March 27
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| Stock symbol: | Nasdaq: RMGN
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| Stock price: | $1.51 at close March 24
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| Market capitalization: | $17.65 million
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