By Devika Patel
Knoxville, Tenn., May 15 - SouthPeak Interactive Corp. completed a $2 million private placement of series A convertible preferred shares on May 12, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company sold 2 million preferreds at $1.00 apiece. It may sell up to 15 million preferreds at that price.
Investors also received an exchange right for their class W and class Z warrants. For 90 days after this deal settles, each investor has the right to exchange one class W or class Z warrant, which are already outstanding, for a newly authorized class Y warrant.
Each investor may exchange a number of class W or class Z warrants for class Y warrants equal to half of the number of series A preferreds purchased.
The class Y warrants, when issued, will have the same terms as the company's class W or class Z warrants, except the exercise price will be $1.50 per share, and the term will expire on May 31, 2013.
Proceeds will be used for working capital and general corporate purposes.
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: | $2 million
|
| Preferreds: | 2 million
|
| Price: | $1.00
|
| Warrants: | No
|
| Settlement date: | May 12
|
| Stock symbol: | OTCBB: GSPA
|
| Stock price: | $1.02 at close May 12
|
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