By Sheri Kasprzak
Atlanta, Feb. 2 - Velocity Express Corp. has raised an additional $1.91 million, lifting total proceeds from the sale of convertible notes to $22.91 million.
The additional notes bear interest at 6% annually and mature the earlier of April 30, 2005 or the date upon which the company's stockholders vote to not approve the conversion of the notes and the additional notes.
The notes are convertible into series M preferred stock at an initial price of $0.0737 each.
The preferreds pay annual dividends of 6% and are convertible into common shares at a rate equal to the liquidation preference per share divided by the conversion price.
The company closed the original $21 million portion of the private placement on Jan. 5. The investors included Scorpion Capital Partners, Special Situations Fund III LP, TH Lee Putnam Ventures and Pequot Scout Fund LP.
Westport, Conn.-based Velocity provides technology infrastructure networks. It plans to use the proceeds from the deal to improve its operations with technology and additional management resources, to strengthen its balance sheet and to provide increased liquidity.
| Issuer: | Velocity Express Corp.
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| Issue: | Convertible notes
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| Amount: | $1.91 million
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| Coupon: | 6%
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| Price: | Par
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| Yield: | 6%
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| Conversion price: | $0.0737
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| Warrants: | No
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| Investors: | Scorpion Capital Partners, Special Situations Fund III LP, TH Lee Putnam Ventures and Pequot Scout Fund LP
|
| Settlement date: | Jan. 31
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| Stock price: | $0.27 at close Jan. 31
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