Alpha Security Group Corporation completed its IPO on March 27, 2007, selling 6.000,000 units at $10.00 per unit. The gross proceeds totaled $60 million, down slightly from the $64 million that the company was looking to raise when it filed its initial S-1 on August 31, 2005, nineteen months ago. A total of $60,000,000, equal to $10.00 per common share, has been placed into an escrow account. This balance includes $1.8 million deferred by the underwriters, which will be paid when the company completes an acquisition, and $3.2 million from the sale of warrants to certain of the insiders. In the event that the company is liquidated, neither the underwriter nor the insiders will receive any of the funds placed into the escrow account.
Up to $1,825,000 of interest earned on the trust fund balance can be used to fund expenses related to investigating and selecting a target business and our other working capital requirements.
Each unit consists of one share of common stock and one warrant to purchase an additional share at $7.50 per share.
Warrant terms: Each warrant will become exercisable on the later of the completion of a business combination with a target business and March 23, 2008. The warrants will expire at 5:00 p.m., New York City time, on March 23, 2011, or earlier upon redemption.
Alpha Security Group Corporation is not going to focus on acquiring “one or more domestic or international operating businesses in the U.S. homeland security or defense industries or a combination thereof.”
As of the date of the offering, the company did not know if the underwriter was going to exercise its over-allotment option.
The securities are listed on the American Stock Exchange. The units (HDS-U) closed at $10.39 yesterday. The common shares (HDS) and warrants (HDS-WT) have not yet begun trading.
The final prospectus:
sec.gov |
