Informix Corp got a vote of confidence on Wednesday, announcing that it had received a $40m equity investment from New York-based investment holding company Fletcher International Ltd. A grateful Informix says it will use the proceeds in its operations as it works to get back on track. Fletcher, which was founded in 1991, has a solid track record for picking winners that includes a highly successful investment in Zenith Electronics Corp, in which Fletcher took a 7% stake back in 1992. Fletcher has handed over the $40m in exchange for 160,000 newly issued shares of Series A convertible preferred stock. Informix has also issued a warrant to acquire up to an additional 140,000 shares at a price of up to $35m. Each share, which has a face value of $250, is convertible into common stock at a per share price equal to 101% of the common stock average price for the thirty days prior to the conversion. Hambrect & Quist LLC served as the placement agent in the transaction. Informix shares closed Wednesday up $0.0625 at $9.50.
This article is from the CBROnline archive: some formatting and images may not be present.
CBR Online legacy content.