By Sheri Kasprzak
Atlanta, July 1 - Ronco Corp. announced it has completed a series of private placements totaling $50 million.
The company sold 13,262,600 shares of preferred stock at $3.77 each to accredited investors.
The preferreds pay annual dividends at 5% and are convertible into common shares at $3.77 each.
Sanders Morris Harris was the placement agent.
In other news, Ronco said it has completed a stock-for-stock merger with Fi-Tek, Inc. The merged company will retain the Ronco Corp. name.
Ronco's shares have also been approved for listing on the Over-the-Counter Bulletin Board under the symbol "RNCP.OB."
Based in Chatsworth, Calif., Ronco, a staple of late-night infomercials, develops consumer products sold through direct response marketing. The proceeds will be used to fund the cash requirements of the merger.
| Issuer: | Ronco Corp.
|
| Issue: | Preferred stock
|
| Amount: | $50 million
|
| Shares: | 13,262,600
|
| Price: | $3.77
|
| Dividends: | 5% |
|
| Conversion price: | $3.77
|
| Warrants: | No
|
| Placement agent: | Sanders Morris Harris
|
| Settlement date: | June 30
|
| Stock price: | $8.90 at close June 30
|
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