April 28, 2000 13:34
Dauphin Enters $100M Equity Line With Institutional Investor (DNTK)
(NewsTraders.com)--Dauphin Technology (DNTK) disclosed today that on April 12 it entered into a common stock purchase agreement with an unnamed institutional investor providing for a $100 million equity line to the company.
The equity line is conditional upon Dauphin's registration of stock and warrants for issuance to the investor; the mobile computer maker may issue as many as 20 million shares, and warrants for an additional 1.4 million shares, in connection with the pact, assuming a current share price of $5.00, according to an S-1 filing.
Under the credit-facility deal, Dauphin is permitted to make up to 18 draws of as much as $10 million each, for a maximum of $100 million, with the company issuing the investor shares based on the draw's amount and the 22-day average trading price and 45-day average volume of Dauphin's stock.
Also upon each draw, Dauphin has agreed to issue the investor warrants to purchase additional common shares equal to 7% of the shares issued. The warrants will have a three-year term and an exercise price equal to 120% of the daily volume weighted average of the company's shares on the trading day before the draw.
Dauphin filed with the SEC today to register nearly 33.3 million shares, 6 million of which were in connection with the equity line, with the remainder related to selling stockholders, warrants and options.
As of March 28, Dauphin had roughly 53.9 million shares outstanding, according to the company's most current annual report.
Shares of Dauphin, based in Palatine, Ill., were recently unchanged at $4.53.
Copyright 2000 NewsTraders Inc. All Rights Reserved 13:37 Friday, April 28, 2000 |
