"Shop At Home (SATH) Completes $20 Mln Private Placement"
Monday July 3, 10:14 am Eastern Time
NEW YORK, July 3 (Reuters) - Shopping service Shop At Home Inc. (NasdaqNM:SATH - news) on Monday completed a private placement of $20 million in convertible preferred stock and warrants with a group of investors led by Promethean Asset Management.
Shop At Home Chief Executive Kent Lillie said in a statement the company has ``numerous strategic opportunities in development'' that will benefit from this financing.
The Nashville, Tenn.-based company said proceeds from the transaction will be used as working capital, for acquisitions of additional television stations, expansion of cable and satellite distribution and other general corporate needs.
The preferred stock will be convertible to Shop At Home common stock beginning six months from the closing date. Conversion rates will increase monthly to a maximum of 88 percent of the lowest closing bid price of the company's common stock for the four days prior to conversion, the company said.
The conversion price, however, will never exceed $12 per share, the company said.
The warrants allow investors to buy two million shares of common stock at a price of $5 per share, which if exercised would generate additional proceeds of $10 million to the Nashville, Tenn.-based company.
Shop At Home sells speciality consumer products, primarily collectibles, via the Internet as well as over broadcast, cable and satellite television networks.
Shares of Shop At Home were up 17/32 at 4-15/16 on the Nasdaq stock market.
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