By Laura Lutz
Des Moines, Aug. 31 - Mycom Group, Inc., which just completed a merger with Veritas Solutions, Inc., may conduct a private placement of stock for as much as $10 million, according to an 8-K filing with the Securities and Exchange Commission.
The company said in the filing that it needs about $5 million for working capital and that some or all of that money will be raised through the private placement.
The placement would be conducted under a private placement memorandum that Veritas previously had issued.
The new offering would consist of up to 10,000,000 and at least 2,000,000 shares at $1.00 each. The placement would be settled in two tranches with the first tranche consisting of 3,000,000 shares.
The first tranche would include a warrant for 20% of the number of shares issued in the tranche. The warrant will be exercisable at $1.25 per share for three years.
Investors in the second tranche would not receive any warrants.
There is a greenshoe for up to 35% of the deal size.
Veritas plans to change its name to Secure Asset Reporting Services, Inc., and Mycom plans to change its name to SARS Corp., Inc., according to the filing. The combined company, based in Bellevue, Wash., will be a software company focused on asset tracking.
| Issuer: | Mycom Group, Inc.
|
| Issue: | Stock
|
| Amount: | $10 million (maximum); $2 million (minimum)
|
| Greenshoe: | For 35%
|
| Shares: | 10,000,000 (maximum); 2,000,000 (minimum)
|
| Price: | $1.00
|
| Warrants: | For 20% of number of shares in first tranche
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $1.25
|
| Announcement date: | Aug. 31
|
| Stock symbol: | OTCBB: MYGP
|
| Stock price: | $1.50 at close Aug. 30
|
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