By Sheri Kasprzak
Atlanta, Feb. 4 - CorVu Corp. said it has amended the terms of its previously announced $5 million private placement to include series C convertible preferred stock and a secured loan. The amended offering with ComVest Investment Partners II LLC will bring the total proceeds to $6.5 million.
The company will now offer 22 million common shares at $0.15 each for $3.3 million; 17,000 shares of series C convertible preferred stock at $100 each for $1.7 million and a secured loan of $1.5 million.
The preferreds are convertible into 200 common shares and accrue dividends at $1.50 per share for the first year, $2.25 per share during the second year and $3 per share in the third year after issuance.
The preferreds are redeemable any time upon 10 days' notice at $100 per share plus unpaid dividends.
The loan bear interest at 6% for the first year, 9% for the second year and 12% for the third year and is payable upon the earlier of 36 months from date of issuance, a merger or the acquisition of more than 50% of the voting power or interest in the company by a single entity.
CorVu is obligated to use half of any proceeds received in future equity or debt financings to redeem outstanding preferreds or retire the loan.
At closing, ComVest will also receive warrants for 2 million shares at $0.50 each, exercisable only if less than two ComVest designees are members of CorVu's board of directors while it owns more than 5 million shares.
Also at closing, CorVu will pay a cash fee of $240,000 to ComVest.
The financing is expected to close Feb. 11.
CorVu is an Eden Prairie, Minn.-based software development company.
| Issuer: | CorVu Corp.
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| Issue: | Stock
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| Amount: | $3.3 million
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| Shares: | 22 million
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| Price: | $0.15
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| Warrants: | For 6 million shares
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| Warrant strike price: | $0.50
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| Investors: | ComVest Investment Partners II LLC
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| Pricing date: | Dec. 20
|
| Amended: | Feb. 2
|
| Settlement date: | Feb. 11
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| Stock price: | $0.28 at close Dec. 20
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| Stock price: | $0.40 at close Feb. 2
|
|
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| Issuer: | CorVu Corp.
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| Issue: | Series C convertible preferred stock
|
| Amount: | $1.7 million
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| Shares: | 17,000
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| Price: | $100
|
| Conversion ratio: | Into 200 common shares
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| Dividends: | $1.50 per share for first year, $2.25 per share for second year and $3.00 per share in third year
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| Call: | Upon 10 days' notice at $100 per share plus unpaid dividends
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| Warrants: | See warrants in stock table
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| Investors: | ComVest Investment Partners II LLC
|
| Amended: | Feb. 2
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| Settlement date: | Feb. 11
|
| Stock price: | $0.40 at close Feb. 2
|
|
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| Issuer: | CorVu Corp.
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| Issue: | Secured loan
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| Amount: | $1.5 million
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| Maturity: | Three years
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| Coupon: | 6% for the first year, 9% for the second year and 12% for the third year
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| Warrants: | See warrants in stock table
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| Investors: | ComVest Investment Partners II LLC
|
| Amended: | Feb. 2
|
| Settlement date: | Feb. 11
|
| Stock price: | $0.40 at close Feb. 2
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