By Sheri Kasprzak
New York, June 19 - Avatech Solutions, Inc. concluded a $4 million private placement of convertible preferred stock.
The company sold 4,000 shares of series F preferreds, which pay annual dividends at 10% and are convertible into common shares at $2.00 each.
The investors also received warrants for 800,000 shares, exercisable at $2.40 each through June 12, 2010.
Separately, Avatech raised $2 million in a private placement of common stock.
The company sold 1 million shares to Pacific Asset Partners and Sigma Opportunity Fund, LLC.
The investors also received warrants for 600,000 shares, exercisable at $2.00 each through June 14 2010.
Proceeds from the preferreds and the common stock will be used to reduce the outstanding principal on $6.5 million in short-term notes connected to a recent acquisition.
Located in Owings Mills, Md., Avatech develops design, data management and facilities management software for corporations and governments.
Convertible preferreds
| Issuer: | Avatech Solutions, Inc.
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| Issue: | Series F convertible preferred stock
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| Amount: | $4 million
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| Shares: | 4,000
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| Price: | $1,000
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| Dividends: | 10%
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| Conversion price: | $2.00
|
| Warrants: | For 800,000 shares
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| Warrant expiration: | June 12, 2010
|
| Warrant strike price: | $2.40
|
| Settlement date: | June 13
|
| Stock symbol: | OTCBB: AVSO
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| Stock price: | $1.86 at close June 13
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| Stock
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| Issuer: | Avatech Solutions, Inc.
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| Issue: | Stock
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| Amount: | $2 million
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| Shares: | 1 million
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| Price: | $2.00
|
| Warrants: | For 600,000 shares
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| Warrant expiration: | June 14, 2010
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| Warrant strike price: | $2.00
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| Investors: | Pacific Asset Partners and Sigma Opportunity Fund, LLC
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| Settlement date: | June 14
|
| Stock symbol: | OTCBB: AVSO
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| Stock price: | $1.90 at close June 14
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