By Laura Lutz
Des Moines, Feb. 13 - General Components, Inc. completed a private placement of preferred stock for $13.25 million.
The company sold 265 shares of its series B preferred stock to new and existing investors at $50,000 per preferred share.
The 6% preferreds are each convertible into 50,000 common shares at $1.00 per share.
The preferreds are mandatorily convertible if General Components' common stock trades at or above $2.00 for 20 out of 30 consecutive trading days with average daily trading volume above 30,000 shares or if the company's raises at least $10 million from a public offering of its common stock.
The company also issued warrants for 12.5 million shares. Each warrant is exercisable at $1.50 per share for two years.
General Components is a New York-based manufacturer of networking equipment.
| Issuer: | General Components, Inc.
|
| Issue: | Series B preferred stock
|
| Amount: | $13.25 million
|
| Shares: | 265
|
| Dividend: | 6%
|
| Price: | $50,000
|
| Yield: | 6%
|
| Conversion ratio: | Into 50,000 common shares per preferred
|
| Warrants: | For 12.5 million shares
|
| Warrant expiration: | Two years
|
| Warrant strike price: | $1.50
|
| Settlement date: | Feb. 8
|
| Stock symbol: | OTCBB: GCPO
|
| Stock price: | $0.20 at close Feb. 13
|
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