Series E preferreds sold along with three-year warrants in offering
By Devika Patel
Knoxville, Tenn., June 5 – Drone Aviation Holding Corp. said it settled a $1.35 million private placement of its series E preferred stock.
The company sold 2.7 million units of one preferred and one warrant at $0.50 per unit. Each warrant is exercisable at $1.00 for three years. The strike price is a 25% premium to the June 4 closing share price of $0.80.
Proceeds will be used for sales and marketing, research and development, and general and administrative expenses.
The company also said that it completed a share exchange agreement in which all of Drone Aviation Corp.’s capital stock was exchanged for the company’s common shares or series D convertible preferred shares, making Drone Aviation a company subsidiary.
“The completion of these transactions was a key piece in our strategic plan to penetrate the military and commercial aerostat and drone space,” chief executive officer Felicia Hess said in a press release. “Our investors recognize the potential tethered aerostats and drones have as safe, lower cost and effective systems, that comply with current FAA regulations, for various military and commercial applications. We expect the capital raised from this financing will assist us to expand our customer base and allow us to accelerate our research and development of our next generation tethered aerostats and drones.”
The Jacksonville, Fla., company designs and develops specialized tethered aerial surveillance and communications solutions.
| Issuer: | Drone Aviation Holding Corp.
|
| Issue: | Units of one series E preferred share and one warrant
|
| Amount: | $1.35 million
|
| Units: | 2.7 million
|
| Price: | $0.50
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $1.00
|
| Settlement date: | June 5
|
| Stock symbol: | OTCBB: MCVED
|
| Stock price: | $0.80 at close June 4
|
| Market capitalization: | $3.14 million
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
