Three million common shares sold at $2.50 per share to three investors
By Devika Patel
Knoxville, Tenn., Nov. 17 – Intersections Inc. received irrevocable subscriptions for a private placement of stock with Loeb Holding Corp., David A. McGough and investment funds affiliated with Osmium Partners, LLC on Nov. 13, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal is slated to raise up to $7.5 million.
The company will sell up to 3 million common shares at $2.50 apiece. The price per share is a 14.16% premium to the Nov. 12 closing share price of $2.19.
Loeb will invest between $5 million and $6.85 million; McGough will invest $500,000 and Osmium will invest $150,000. Prior to this placement, Loeb holds about 34.3% of the company’s outstanding stock, Osmium owns about 16.1% and McGough holds about 1.3% of the stock.
Proceeds will be used for working capital and general corporate purposes.
The Chantilly, Va., company provides consumer and corporate identity risk management services.
| Issuer: | Intersections Inc.
|
| Issue: | Common stock
|
| Amount: | $7.5 million (maximum)
|
| Shares: | 3 million (maximum)
|
| Price: | $2.50
|
| Warrants: | No
|
| Investors: | Loeb Holding Corp. (for between $5 million and $6.85 million), David A. McGough (for $500,000) and Osmium Partners, LLC (for $150,000)
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| Pricing date: | Nov. 13
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| Stock symbol: | Nasdaq: INTX
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| Stock price: | $2.19 at close Nov. 12
|
| Market capitalization: | $42.58 million
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