By Sheri Kasprzak
New York, Aug. 8 - Velocity Express Corp. intends to raise $5 million from a private placement of series Q convertible preferreds.
The company plans to sell 500,000 shares of the preferred stock at $10.00 apiece.
The 6% preferreds are initially convertible into 9.0909 common shares at $1.10 each.
The preferreds were sold under the same terms as $40 million in preferreds the company issued July 3.
Also, the company intends to raise another $1.8 million in promissory notes in order to pay the remaining debt of CD&L, Inc., a company Velocity acquired in July.
The notes would include warrants for 345 shares for every $1,000 in principal of notes, exercisable at $1.45 each.
Based in Westport, Conn., Velocity Express is a same-day postal delivery service.
| Issuer: | Velocity Express Corp.
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| Issue: | Series Q convertible preferreds
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| Amount: | $5 million
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| Shares: | 500,000
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| Price: | $10.00
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| Conversion ratio: | Each preferred into 9.0909 common shares
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| Conversion price: | $1.10
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| Warrants: | No
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| Settlement date: | Aug. 8
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| Stock symbol: | Nasdaq: VEXP
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| Stock price: | $1.37 at close Aug. 7
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