PSM Raises $5.7M of Equity
PSM Holdings Inc., the Oklahoma City-based parent of PrimeSource Mortgage Inc., has received gross proceeds of $5.7 million from two private placement transactions involving preferred equity.
LB Merchant, a unit of investment banking firm Littlebanc Advisors LLC, invested $3.7 million to purchase all 3,700 units of Series A Convertible Preferred Stock. An undisclosed institutional investor paid $2 million to buy 2,000 units of Series B Convertible Preferred Stock.
Both the Series A and Series B shares are convertible into PSM common stock at the fixed price of $0.40 per share.
PSM’s common stock, which had closed at $0.40 per share on Feb. 6, the night before the offering was priced, was up to $0.50 per share shortly after 11 a.m. this morning.
As part of the transaction, PSM is reducing its board from seven members to five, and LB Merchant will appoint two members for those five seats.
Littlebanc Advisors was the placement agent for both offerings.