Opus Point Partners leads investment in financial services company
By Susanna Moon
Chicago, Oct. 5 - National Holdings Corp. issued $3 million shares of its series D convertible preferred stock in a private placement, according to an 8-K filing with the Securities and Exchange Commission.
The company sold investors led by Opus Point Partners 60,000 preferreds at $50 apiece and warrants for 6 million shares.
Each warrant has an exercise price of $0.50 per share and vests 33% on the date of grant and 33% after the each of the first and second years. Each tranche of warrants expires five years from the date of vesting.
The warrant strike price represents a 25% premium to the closing share price on Oct. 1.
Each preferred is convertible, at the holder's option, at any time after issuance at a conversion price of $0.50, or into about 100 common shares.
The company entered into the securities purchase agreement on Sept. 29.
New York-based National Holdings is the holding company for National Securities Corp., National Insurance Corp. and National Holdings Mortgage Corp.
| Issuer: | National Holdings Corp.
|
| Issue: | Series D convertible preferred stock
|
| Amount: | $3 million
|
| Shares: | 60,000
|
| Price: | $50.00
|
| Conversion price: | $0.50
|
| Conversion ratio: | Into 100 shares
|
| Warrants: | For 6 million shares
|
| Expiration: | Five years
|
| Warrant strike price: | $0.50
|
| Investor: | Opus Point Partners (lead)
|
| Pricing date: | Sept. 29
|
| Stock symbol: | OTCBB: NHLD
|
| Stock price: | $0.40 at close Oct. 1
|
| Market capitalization: | $8.64 million
|
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