Deal also includes two-year warrants; preferreds pay 8% dividends
By Devika Patel
Knoxville, Tenn., Oct. 31 – Virtual Piggy, Inc. raised $2.55 million in a private placement of its 8% series B cumulative convertible preferred stock on Oct. 30, according to an 8-K filed Friday with the Securities and Exchange Commission.
The company sold 28,378 preferreds at $90.00 per preferred. Each preferred converts to 100 common shares at an initial conversion price of $0.90 per share. The conversion price is a 13.92% premium to the Oct. 29 closing share price of $0.79.
Investors also received warrants for 2,837,800 common shares, exercisable at $1.00 for two years. The strike price reflects a 26.58% premium to the Oct. 29 closing share price.
Director George O. McDaniel bought 5,555 preferreds for $499,950, and the John Paul DeJoria Family Trust bought 22,223 preferreds for $2 million.
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 B cumulative convertible preferred stock
|
| Amount: | $2,554,020
|
| Shares: | 28,378
|
| Dividends: | 8%
|
| Price: | $90.00
|
| Conversion price: | $0.90
|
| Conversion ratio: | Into 100 common shares (per preferred)
|
| Conversion premium: | 13.92%
|
| Warrants: | For 2,837,800 shares
|
| Warrant expiration: | Two years
|
| Warrant strike price: | $1.00
|
| Investors: | George O. McDaniel (for $499,950) and the John Paul DeJoria Family Trust (for $2,000,070)
|
| Settlement date: | Oct. 30
|
| Stock symbol: | OTCBB: VPIG
|
| Stock price: | $0.79 at close Oct. 29
|
| Market capitalization: | $94.86 million
|
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