SpaceDev Closes $2.5 Million Financing and Expands Credit Facility: "SpaceDev Closes $2.5 Million Financing and Expands Credit Facility
POWAY, Calif.--(BUSINESS WIRE)--Aug. 30, 2004--SpaceDev (OTCBB:SPDV) has received $2.5 million in preferred stock financing and increased its revolving credit facility to $1.5 million through the Laurus Master Fund (Laurus), a New York-based institutional fund that specializes in providing financing to growing, small and micro-capitalization companies.
'The purpose of this financing is to take yet another step in strengthening our balance sheet and providing capital to finance the growth of the Company,' said Richard B. Slansky, SpaceDev's chief financial officer. 'As interest in our Company and technologies grow, we believe our plan to create a stronger balance sheet will help us obtain new and larger contracts under more favorable terms.'
SpaceDev sold Laurus 250,000 shares of 6.85% convertible preferred stock priced at $10.00 a share, resulting in gross proceeds to the Company of $2.5 million. The preferred stock is convertible at a fixed price of $1.54 per share and dividends are payable in cash or through the issuance of the Company's common stock. The underlying common shares are initially restricted; however, SpaceDev has committed to file for registration of the shares with the SEC. Pursuant to this financing, Laurus was also issued a five-year warrant to purchase 487,000 shares of common stock at $1.77 per share. The Company has the unilateral right to re-purchase the preferred stock under certain circumstances.
'The proceeds from this financing will be used for the continued growth of our business and will cover our currently projected working capital needs,' Mr. Slansky stat"
# posted by penny stocks @ 3:38 PM
