Between 18 and 20 units sold with five-year warrants at $100,000 each
By Devika Patel
Knoxville, Tenn., Feb. 3 – RoomLinx, Inc. will conduct a private placement of units to raise between $1.8 million and $2 million, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The company raised $550,000 in an initial tranche on Feb. 2.
The company is selling between 18 and 20 units of 100,000 series B convertible preferred shares and 300,000 warrants at $100,000 per unit. It sold 5.5 units in the initial tranche.
Each preferred is convertible into common stock at $0.28 per share, which is a 17.65% discount to the Feb. 1 closing share price of $0.34.
The warrants are each exercisable at $0.40 for five years. The strike price represents a 17.65% premium to the Feb. 1 closing share price.
Broomfield, Colo.-based RoomLinx provides wireless and wired internet services to the hospitality industry.
| Issuer: | RoomLinx, Inc.
|
| Issue: | Units of 100,000 series B convertible preferred shares and 300,000 warrants
|
| Amount: | $1.8 million (minimum), $2 million (maximum)
|
| Units: | 18 (minimum), 20 (maximum)
|
| Price: | $100,000
|
| Dividend: | 10%
|
| Conversion price: | $0.28
|
| Warrants: | 300,000 warrants per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.40
|
| Settlement date: | Feb. 2 (for $550,000)
|
| Stock symbol: | OTCBB: RMLX
|
| Stock price: | $0.34 at close Feb. 1
|
| Market capitalization: | $38.09 million
|
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