On the heels of its $6m investment from Microsoft Corp (CI No 3,361), General Magic Inc says it has completed a $5m private placement. The company will use the money to help fund the growth of its Serengeti network service, expected to be launched in mid- year. The latest round of financing consists of an […]
On the heels of its $6m investment from Microsoft Corp (CI No 3,361), General Magic Inc says it has completed a $5m private placement. The company will use the money to help fund the growth of its Serengeti network service, expected to be launched in mid- year. The latest round of financing consists of an initial sale of $5m of convertible preferred stock. The securities can be converted into common stock at a discount to market price. In connection with the deal, General magic also issued 5-year warrants to purchase additional shares of common stock at a premium to the common stock price as of the date of the transaction. General Magic has the option to secure an additional $5m on similar terms, based on certain conditions including share price, average trading volume and total equity. The company says the money, coupled with the Microsoft investment, will help maximize its marketing and sales efforts.
