Spy Optic’s parent company Orange 21 announced today that it was offering 7.6 million-dollars of common stock to its current share holders for 80 cents per share.
According to the press release:
The proceeds from the rights offering are expected to be used for general corporate purposes, which may include research and development, capital expenditures, payment of trade payables, working capital and general and administrative expenses. Orange 21 may also use a portion of the net proceeds to acquire or invest in complementary businesses, products and technologies, although it currently has no current plans, commitments or agreements with respect to any such transactions.
In the rights offering, stockholders, option holders and warrant holders as of 5:00 p.m., New York City time January 21, 2009, will be issued, at no charge, one subscription right for each share of common stock then outstanding or subject to outstanding options or warrants (whether or not currently exercisable). Each right will entitle the holder to purchase one share of Orange 21's common stock for $0.80 per share. Orange 21 may also allocate unsubscribed shares to other investors at the price of $0.80 per share.