Published on 10/2/2008 in the Prospect News PIPE Daily.
New Issue: SouthPeak takes in another $250,000 from convertible preferreds sale
By Devika Patel
Knoxville, Tenn., Oct. 2 - SouthPeak Interactive Corp. sold $250,000 more of its series A convertible preferred stock on Monday, according to an 8-K filed Thursday with the Securities and Exchange Commission.
On May 12, the company completed a $2 million tranche of this private placement. SouthPeak raised $4.59 million in a second tranche on May 21 and $2.21 million in a May 30 third tranche. The company settled a $4.19 million fourth tranche on June 11, an $880,000 fifth tranche on July 17 and a $453,833 sale on Aug. 28.
The total size of the placement is now $14.56 million.
The company sold the preferreds for $1.00 apiece.
The preferreds are convertible into common shares. The conversion price is initially $1.00 and is subject to adjustment.
Proceeds will be used for working capital and general corporate purposes.
The company said it will pay HCFP/Brenner Securities LLC a fee consisting of cash in an amount equal to 6.5% of the gross proceeds, warrants with an exercise price of $1.00 to purchase a number of shares of common stock equal to 10% of the total number of issued preferreds and one class Y warrant for every 10 class Y warrants issued in connection with the purchase agreement.
Based in Falls Church, Va., SouthPeak Interactive, formerly known as Global Services Partners Acquisition Corp., develops and publishes interactive entertainment software.
| Issuer: | SouthPeak Interactive Corp.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $14,563,833
|
| Shares: | 14,563,833
|
| Price: | $1.00
|
| Conversion price: | $1.00
|
| Agent: | HCFP/Brenner Securities LLC
|
| Warrants issued to agent: | For a number of shares of common stock equal to 10% of the total number of issued preferreds
|
| Warrant strike price: | $1.00
|
| Settlement date: | May 12 (for $2 million), May 21 (for $4,585,000), May 30 (for $2,207,500), June 11 (for $4,192,333), July 11 (for $880,000), Aug. 28 (for $453,833), Sept. 29 (for $250,000)
|
| Stock symbol: | OTCBB: SOPK
|
| Stock price: | $2.60 at close Aug. 25
|
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