Answers issued the VC firm convertible stock and warrants.
Answers Corporation (Nasdaq:ANSW) has sold up to $13 million worth of convertible preferred stock and warrants to Redpoint Ventures. Answers rose 4.9% in early trading on Nasdaq today to $4.11, giving a market cap of $32.3 million.
Answers issued $6 million of series A convertible preferred stock, convertible into 1.33 million shares of common stock at a conversion price of $4.50 per share, with 50% warrant coverage at an exercise price of $4.95. Redpoint was also issued a second tranche warrant, exercisable over the next 12 months, to purchase up to an additional $7 million of series B convertible preferred stock, convertible into 1,272,727 shares of common stock at a conversion price of $5.50 per share, with 50% warrant coverage at an exercise price of $6.05.
Redpoint partner Allen Beasley will join Answers' board. If Redpoint exercises its option for the second tranche warrant, it will be able to appoint a second director.
Published by Globes [online], Israel business news - www.globes-online.com - on June 17, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008