By Sheri Kasprzak
Atlanta, Jan. 5 - Velocity Express Corp. said it raised $21 million from a private placement of convertible notes.
The company received an equity financing from Scorpion Capital Partners, Special Situations Fund III LP, TH Lee Putnam Ventures and Pequot Scout Fund LP.
The investors bought $21 million in convertible notes, which bear interest at 6% annually.
The notes are convertible into shares of series M preferred stock when certain conditions are met.
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 increase liquidity.
| Issuer: | Velocity Express Corp.
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| Issue: | Convertible notes
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| Amount: | $21 million
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| Coupon: | 6%
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| Price: | Par
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| Yield: | 6%
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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
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| Settlement date: | Dec. 21
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| Stock price: | $0.24 at close Dec. 21
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