John,
You were asking about General Magic?
General Magic Secures $35M Financing
Commitments
Dow Jones Newswires
SUNNYVALE, Calif. -- General Magic Inc. (GMGC) received
commitments for $35 million in equity investments and bank financing.
In a press release Thursday, General Magic said it received commitments
for $32 million in equity investments from investment funds managed by
Palladin Group LP, Rose Glen Capital Management LP and Promethian
Investments Group LLC.
General Magic agreed to sell the investors $30 million of Series C
preferred stock, which can be converted into common stock at 135% of
the market price of its stock at the time of closing, or at a price based on the
market price of its stock before conversion, whichever is less.
The Series C preferred stock is not convertible until after a five-month
period following the date of issuance with limited exceptions, the company
said.
General Magic said the investors also agreed to exercise their right to buy an
additional $2 million of Series B preferred stock under an agreement
reached in March.
The company will further issue to the investors 150,000 three-year warrants
and 160,000 five-year warrants to buy additional shares at a premium to the
common stock price as of the date of issue.
General Magic will use the proceeds to help fund the "anticipated growth" of
its Portico network service. The company expects Portico to be available
July 30.
The company said the remaining $3 million funding will come from Silicon
Valley Bank's Software Capital Practice Group to finance additional
equipment requirements.
General Magic offers integrated voice and data applications.
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This one is of no practical value as a short since it's trading under a dollar, though it was over 5 a year ago. Interesting story, anyway.
Incomnet Inc. Pfd Holders Rescind
Conversion To Cmn
Dow Jones Newswires
WOODLAND HILLS, Calif. -- Incomnet Inc. (ICNT) said 13
shareholders rescinded their conversions of Series A and Series B
convertible preferred stock into Incomnet common stock because the
company was unable to deliver the number of common shares required
under the agreement.
As reported June 15, Incomnet said it would ask shareholders to approve a
one-for-six reverse stock split in order to satisfy obligations resulting from a
conversion of preferred shares. The company said shareholders converted
2,447.9 preferred shares into 14.6 million common shares on June 10 and
11.
In a press release Thursday, the company said only 434.2 preferred shares
were converted into 3,100,900 common shares.
The remaining preferred stock wasn't converted because the company
reached its limit of 20 million authorized common shares, leaving a total of
11,519,310 common shares.
Incomnet said it still owes 2,132,324 common shares to four shareholders
who haven't rescinded their preferred stock conversion.
The company will hold a special meeting for shareholders to vote on a
1-for-6 reverse split. If approved, the company will have 3,688,721
common shares outstanding.
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