Deal consists of 500,000 preferreds at $2.00 each with $0.01 warrants
By Devika Patel
Knoxville, Tenn., Dec. 2 – ModSys International Ltd. settled a $1 million private placement of preferred stock on Nov. 25, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company sold 500,000 preferreds at $2.00 per share. The price per preferred is a 32.45% premium to the Nov. 24 closing share price of $1.51.
Investors also received warrants for 250,000 ordinary shares. The warrants are each exercisable at $0.01.
Columbia Pacific Opportunity Fund, LP bought 200,000 preferreds and 100,000 warrants for $400,000, Prescott Group Aggressive Small Cap Master Fund also bought 200,000 preferreds and 100,000 warrants for $400,000 and Mindus Holdings, Ltd. bought 100,000 preferreds and 50,000 warrants for $200,000.
Based in Seattle, the company provides legacy migration products that are used by companies to migrate from their legacy mainframe and distributed information technology infrastructures to modern environments and programming languages.
| Issuer: | ModSys International Ltd.
|
| Issue: | Preferred stock
|
| Amount: | $1 million
|
| Preferreds: | 500,000
|
| Price: | $2.00
|
| Warrants: | For 250,000 shares
|
| Warrant strike price: | $0.01
|
| Investors: | Columbia Pacific Opportunity Fund, LP (for $400,000), Prescott Group Aggressive Small Cap Master Fund (for $400,000) and Mindus Holdings, Ltd. (for $200,000)
|
| Settlement date: | Nov. 25
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| Stock symbol: | Nasdaq: MDSY
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| Stock price: | $1.51 at close Nov. 24
|
| Market capitalization: | $36.23 million
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