Diversinet Raises U.S.$2.0 Million in Private Placement

Tuesday 20 January 2004 10:09 CET | News

Diversinet has received U.S.$2,000,000 in gross proceeds from a private placement with Lakefront Partners, LLC. Additionally, James B. Wigdale, Jr. (founder of Lakefront) has agreed to join Diversinets advisory board and to become a strategic partner and business consultant to assist the Company over the next two years with its corporate development. Diversinet completed the issue to Lakefront Partners, LLC ("Lakefront") and Mr. Wigdale of 1,000,000 common shares and 1,100,000 common share purchase warrants ("Warrants"). The Company received gross proceeds of U.S.$ 2,000,000 in the transaction. The Warrants were comprised of 500,000 Warrants exercisable at U.S.$2.00 and 600,000 at U.S.$2.05. Each Warrant entitles the holder thereof to acquire one common share for a period of three years. The common shares cannot be re-sold in the public markets until a registration statement has been filed and declared effective by the U.S. Securities and Exchange Commission. The proceeds will be used to expand the Companys sales efforts, working capital and general operations. After completion of the private placement, there are 12,043,037 shares issued and outstanding, and 15,265,695 shares on a fully diluted basis. The shares and Warrants exercisable within 60 days represent approximately 11.9% of the issued and outstanding shares of Diversinet. Prior to the completion of this transaction, Lakefront beneficially owned 80,000 common shares of Diversinet and purchase warrants for 18,750 Diversinet common shares, representing less than 1% of all issued and outstanding shares of Diversinet. As a result of the transaction, Lakefront, together with Mr. Wigdale, beneficially owned, as of January 20, 2004, a total of 1,080,000 common shares and purchase warrants convertible within 60 days into 518,750 shares, together representing approximately 12.7% of the issued and outstanding common shares of Diversinet, presuming the exercise of such warrants. Neither Lakefront nor Mr. Wigdale currently has any intention of increasing their ownership in the common shares of Diversinet other than pursuant to exercise of the warrants disclosed therein. Mr. Wigdale is the control person of Lakefront Capital Management, LLC, the manager of Lakefront. Both Lakefront and Mr. Wigdale have offices located at 205 E. Wisconsin Avenue, Suite 220, Milwaukee, WI 53202. Lakefront and Mr. Wigdale may be deemed to be acting jointly or in concert in respect to their security holdings of Diversinet.

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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce