Company offers stock to finance corporate purposes and working capital
By Devika Patel
Knoxville, Tenn., May 6 - Viking Systems, Inc. said it arranged an oversubscribed $3 million private placement of stock with lead investor Clinton Group, Inc.
The company will sell 12 million common shares at $0.25 per share. The price per share is identical to the May 5 closing share price.
Investors will also receive warrants for 9 million shares, which are each exercisable at $0.25 for five years.
Settlement is expected May 10.
Proceeds will be used for general corporate purposes and working capital. Prior to closing the financing, the company will also terminate its equity line of credit with Dutchess Opportunity Fund.
"We intend to use this financing to execute an aggressive marketing campaign throughout the U.S. and in significant markets in Europe and Asia," president and chief executive officer Jed Kennedy said in a press release. "This strategy will include the accelerated placement of demonstration systems, which are key ingredients in the sales process."
Based in Westborough, Mass., Viking manufactures visualization systems for minimally invasive surgery.
| Issuer: | Viking Systems, Inc.
|
| Issue: | Common stock
|
| Amount: | $3 million
|
| Shares: | 12 million
|
| Price: | $0.25
|
| Warrants: | For 9 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.25
|
| Investor: | Clinton Group, Inc. (lead)
|
| Pricing date: | May 6
|
| Settlement date: | May 10
|
| Stock symbol: | OTCBB: VKNG
|
| Stock price: | $0.25 at close May 5
|
| Market capitalization: | $17.64 million
|
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