On your post #983, the 8-K it details the $2,000,000 financing with Plazacorp:
EQUITY FINANCING
- -----------------
On August 4, 1997 the Company completed a $2.0 million equity financing with
Plazacorp, Inc. The Company issued 2,000 Preferred Series A shares, $.01 par
value, at the price of $1,000 per share. After financing commissions and legal
and accounting fees, the Company netted approximately $1.82 million from this
financing. The Company plans to use these funds primarily for acquisition
costs.
The Company intends to register these securities under Form S-3. The Preferred
Shares bear interest at 7% per annum and are convertible into common shares
under a variable pricing formula between $4.00 and $5.50 per share. Under this
formula, the Company expects to issue a minimum of 363,636 shares and a
maximum of 500,000 shares. The shares are convertible in four blocks as
follows:
Date Percent Amount
- ----------------- -------- ----------
November 2, 1997 15% $ 300,000
December 17, 1997 25% $ 500,000
January 31, 1998 30% $ 600,000
April 1, 1998 30% $ 600,000
- ----------------- -------- ----------
TOTAL 100% $2,000,000
In the S-3 filing it lists registration of 700,000 shares of stock underlying the Prefered Stock and these same 4 entities hold 133,000 warrents, refered to as B warrents. It also states that the company will recieve $17,574,000 upon exercse of warrents. @ $5.00 per warrent this equals 3,514,800 warrents outstanding and I assume now registered. In the 10-K for '96 there are listed 3,067,500 warrents, @ $5.00 ea = $15,337,500.
My question is has there been a change in terms on the $2,000,000 equity financing, was there another "financing", or what?
Anyone in the know please post and straighten me & others out.
I agree that the S-3 is a non event, but the filing seems to muddy the water on shares outstanding.
Thank You
Jim |
