News
A21 raises $15.5MM Private Investment
A21, Inc., owner of SuperStock, PureStock, and Ingram Publishing, has raised $15.5 million in the form of a private placement of Secured Convertible Notes with both existing investors and new institutional investors. Most notable among the latter, Morgan Stanley, purchased $5 million of the Notes. The Notes, due March 2011, bear interest at 5% per annum, and are convertible into shares of the Company's common stock at $0.65 per share, which was about A21’s stock price as of the end of trading last week. The Company will use the proceeds to repay existing debt, to provide working capital, and for acquisitions and expansion. Chairman and CEO of a21, Albert H. Pleus, said, “We are pleased that this investor group recognizes the progress the Company has made by electing to complete this financing at a premium to the current market price of our common stock." He added, "While about 50% of the Notes were purchased by our existing investors, we have also added some very important new investors to the Company. The financing allows us to improve our capital structure, retire certain outstanding warrants, strengthen our balance sheet, and support the next phase of the Company's growth." Click here for more details.
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