By Sheri Kasprzak
New York, May 25 - Viking Systems, Inc. settled a private placement of its series B convertible preferred stock for $8 million.
The company issued 8,000 shares of the preferreds to a group of institutional investors that included Bushido Capital Master Fund, LP; Midsummer Investment, Ltd.; Rockmore Investment Master Fund, Ltd.; Crestview Capital Master LLC; Gryphon Master Fund, LP; Gamma Opportunity Capital Partners, LP; Vision Opportunity Master Fund, Ltd.; GSSF Master Fund LP; and Pierce Diversified Strategy Master Fund, LLC.
Of the preferreds issued, 7,250 were issued for cash and 750 of the preferreds were issued as part of the company's conversion of $4.75 million of convertible notes.
The preferreds are initially convertible into 44,444,444 common shares at $0.18 each.
Also, the preferreds pay annual dividends at 8% through May 22, 2009. The dividend increases to 11% through May 22, 2010 and again to 14% after May 22, 2011.
The investors also received warrants for 22,222,222 shares, exercisable at $0.35 each for five years.
Connected to the offering, Viking completed the conversion of $4.75 million of its outstanding convertible notes. The notes were converted into a total of 26,388,896 common shares at $0.18 each. The conversion price was reduced from the original $0.20.
Proceeds from the placement will be used for working capital and general corporate purposes.
Based in La Jolla, Calif., Viking develops three-dimensional endoscopic vision systems used in minimally invasive surgery.
| Issuer: | Viking Systems, Inc.
|
| Issue: | Series B convertible preferred stock
|
| Amount: | $8 million
|
| Shares: | 8,000
|
| Price: | $1,000
|
| Dividends: | 8% (initially)
|
| Conversion price: | $0.18
|
| Conversion ratio: | Into 44,444,444 common shares
|
| Warrants: | For 22,222,222 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.35
|
| Investors: | Bushido Capital Master Fund, LP; Midsummer Investment, Ltd.; Rockmore Investment Master Fund, Ltd.; Crestview Capital Master LLC; Gryphon Master Fund, LP; Gamma Opportunity Capital Partners, LP; Vision Opportunity Master Fund, Ltd.; GSSF Master Fund LP; and Pierce Diversified Strategy Master Fund, LLC
|
| Settlement date: | May 22
|
| Stock symbol: | OTCBB: VKSY
|
| Stock price: | $0.48 at close May 22
|
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