PMFG, Inc. (PMFG) said it completed a private placement of $21.14 million of a newly created class of Series A convertible preferred stock and warrants. The company used the net proceeds from the offering and available cash to repay all outstanding indebtedness under its subordinated term loan.
The preferred stock is immediately convertible into approximately 2.64 million shares of the company's common stock at an initial conversion price of $8.00 per share. Holders of the preferred stock are entitled to quarterly dividends at an annual rate of 6.0%, payable in cash or equity, or a combination thereof, at the Company's option. In addition, in some circumstances the investors would be entitled to participate in future unregistered offerings of the company's equity securities. The warrants entitle the investors to purchase approximately 1.32 million additional shares of common stock at an exercise price of $10.56 per share. The warrants are not exercisable for the first six months following closing and have a five-year term.
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