Prettybrook, other investors also get warrants for 2.4 million shares
By Devika Patel
Knoxville, Tenn., May 4 – Dynatronics Corp. said it will raise about $4 million in a private placement of 8% series A convertible preferred stock. Prettybrook Partners LLC is the lead investor, and Ladenburg Thalmann & Co. Inc. is the agent.
The company will sell 1.6 million preferreds. The preferreds are each convertible into one common share.
Investors also will receive six-year warrants for 2.4 million common shares, which are each exercisable at $2.75, a 2.14% discount to the May 1 closing price of $2.81.
Settlement is expected June 30.
Proceeds will be used to promote organic growth and pursue potential acquisitions.
The rehabilitation and physical therapy products manufacturer is based in Cottonwood Heights, Utah.
| Issuer: | Dynatronics Corp.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $4 million (approximate)
|
| Preferreds: | 1.6 million
|
| Dividends: | 8%
|
| Conversion ratio: | Into 1.6 million common shares
|
| Warrants: | For 2.4 million shares
|
| Warrant expiration: | Six years
|
| Warrant strike price: | $2.75
|
| Agent: | Ladenburg Thalmann & Co. Inc.
|
| Investor: | Prettybrook Partners LLC (lead)
|
| Pricing date: | May 4
|
| Settlement date: | June 30
|
| Stock symbol: | Nasdaq: DYNT
|
| Stock price: | $2.81 at close May 1
|
| Market capitalization: | $7.31 million
|
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