By Devika Patel
Knoxville, Tenn., Aug. 5 - Roomlinx, Inc. said it sold $2.5 million of its series C convertible preferred stock.
The preferreds, sold at $2,500 apiece, are convertible at $0.025 per share. They pay 6% in dividends per year, which is payable quarterly, at the company's option, in cash or shares.
Each investor also received series C-1 warrants for 200 series C preferreds, exercisable at $4,000, and series C-2 warrants for 200 series C preferreds, exercisable at $6,000. Both types of warrants are exercisable for three years.
The preferreds will automatically convert to common shares once the company is current on its Securities and Exchange Commission filings and it has a sufficient number of common shares available.
Proceeds will be used primarily to increase Roomlinx's footprint of its interactive, in-room media, entertainment and business solution within the hospitality, resort and timeshare industries.
Denver-based Roomlinx provides wireless and wired internet solutions to the hospitality industry.
| Issuer: | RoomLinX, Inc
|
| Issue: | Series C convertible preferred stock
|
| Amount: | $2.5 million
|
| Shares: | 1,000
|
| Price: | $2,500
|
| Dividends: | 6%
|
| Conversion price: | $0.025
|
| Warrants: | For 400 series C preferreds
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $4,000 (for 200 preferreds), $6,000 (for 200 preferreds)
|
| Settlement date: | Aug. 5
|
| Stock symbol: | Pink Sheets: RMLX
|
| Stock price: | $0.022 at close Aug. 4
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
