Series A redeemable preferreds were sold with 10.86 million warrants
By Devika Patel
Knoxville, Tenn., May 1 - Virtual Piggy, Inc. completed a $5.82 million second tranche of a $10.86 million private placement of series A redeemable preferred stock on April 30, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal raised $5.05 million on Jan. 27.
The company sold 50,450 preferreds at $100.00 apiece in the first tranche and 58,150 preferreds in the second.
The 8% preferreds are initially convertible into common stock at $1.00 per share and the company may force conversion.
Investors also received two-year warrants for 5,045,000 shares in the first tranche and warrants for 5,815,000 shares in the second. The warrants are each exercisable at $1.00.
The strike price and conversion price are a 0.99% discount to the Jan. 24 closing share price of $1.01.
Virtual Piggy is a Hermosa Beach, Calif.-based company developing its online "Piggy Bank" security service that will allow parents to set up and control their children's spending online.
| Issuer: | Virtual Piggy, Inc.
|
| Issue: | Series A cumulative convertible preferred stock
|
| Amount: | $10.86 million
|
| Preferreds: | 10,860
|
| Price: | $100.00
|
| Dividends: | 8%
|
| Conversion price: | $1.00
|
| Call: | Yes
|
| Warrants: | For 10.86 million shares
|
| Warrant expiration: | Two years
|
| Warrant strike price: | $1.00
|
| Settlement date: | Jan. 27 (for $5,045,000), April 30 (for $5,815,000)
|
| Stock symbol: | OTCBB: VPIG
|
| Stock price: | $1.01 at close Jan. 24
|
| Market capitalization: | $120.31 million
|
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