GVI secures $33.9-million private placement of common stock
CARROLLTON, Texas - GVI Security Solutions, a provider of integrated security solutions, announced the completion of a private placement of approximately 22 million shares of common stock for $33.9 million at $1.50 per shareÃ¢â‚¬â€equaling out to proceeds of $31.5 million.
Roughly $4.7 million of the proceeds from the placement will be used to repay Laurus Master Fund under a revolving promissory note and $1.15 million was used to repay notes sold to affiliates of the company in a bridge financing completed in October 2004. GVI is also required to use an additional $10 million of the proceeds to repurchase approximately 6.6 million shares from William Teitelbaum, a stockholder in the company, pursuant to a settlement agreement. The remainder of the proceeds will be used primarily for future acquisition opportunities, working capital and other corporate needs.
In a prepared statement, GVIÃ¢â‚¬â„¢s Chief Executive Officer Nazzareno Paciotti said the financing helps position the company for future growth.