27 Jan 2011capital raising announcement● Neutral
On January 21, 2011, the company accepted a further $420,000 of Series A Preferred Stock subscriptions, bringing the total raised in that offering to $6,000,000, and it will take no more. Each $100,000 unit included a warrant for 30,000 common shares at $2.00 for three years. National Securities Corporation was the placement agent, with fees of 10% or 3.5% of proceeds depending on the investor, plus agent's warrants.
What it means for a shareholder
30,000 new shares at $2.00 to raise about $100,000. That's 0.114% dilution: every existing holder's slice gets 0.114% smaller. If you held $1,000 of shares (500 at the issue price), your slice goes from 0.00191% to 0.0019% of the company. To keep it you'd need 1 more shares - about $2 at the issue price.
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