- RGS Energy (OTC:RGSE -29.9%) has priced its stock/warrant offering. The company is selling units consisting of one share and four warrants at $0.50 apiece.
- Not your standard offering: The warrants include a Series A warrant to buy half of one share for $0.50, a Series B warrant to buy shares for "a 'stated amount' equal to an investor's pro rata share of $8 million based on the aggregate purchase price paid by such investor for Units in the Offering compared to the aggregate purchase price paid by all investors for Units in this offering," and a Series C warrant to "purchase up to 50% of that number of shares of Common Stock actually issued upon exercise of the Series B Warrant for a price of $0.50 per share."
- The Series A and C warrants are exercisable for 5 years starting six months after the closing of the offering. The Series B warrants are exercisable for a year after the offering's closing.
- Initial gross proceeds are set to total $3.5M. The company can raise up to $8M more by effecting a mandatory exercise of the Series B warrants.
- Shares have given back nearly all of yesterday's big gains, continuing the roller-coaster ride they began a week ago.
- Yesterday: RGS falls after announcing $3.5M offering