'mktg, inc.' (CMKG) said Monday that it has entered into a securities purchase agreement with an investment vehicle organized by Union Capital Corp., and certain of directors and officers of the company, providing for a $5 million financing led by an affiliate of Union Capital.
The financing will consist of $2.5 million in aggregate principal amount of Senior Secured Notes, $2.5 million in aggregate stated value of Series D Convertible Participating Preferred Stock, and Warrants to purchase 2,456,272 shares of Common Stock.
The financing is expected to close on or about December 10.
The company had previously reported that it was under financial strain and needed to seek working capital in light of recent losses, the suspension of its revolving credit facility and cash collateralization of its term loan, which has since been repaid, and a reduction in advance payments by clients.
The financing would ordinarily require prior stockholder approval under Nasdaq's listing rules, but the company said it has sought and obtained Nasdaq approval for an exception to their stockholder approval requirements so that the company could conclude the proposed financing at the earliest possible time.
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