The proposed use of proceeds is very broad: working capital, sales and marketing activities, product development, general and administrative matters and capital expenditures. Almost as important is eliminating the company's Class A and Class B common shares for a single class of common and performing a reverse split in order to hit the $3-per-share threshold set by NASDAQ. Currently, there are 750 million shares authorized, not worth a heck of a lot for a single share. SilverSun is proposing a reverse split ranging from 20-to-1 to 35-to-1 to get under a 75 million authorized share minimum. The company's board has the authority to pick the ratio. No Class B shares have ever been issued. Class A shares are currently traded on OTC Bulletin Board for 24 cents per share which is toward the high end of a 52-week range of 6-cents per share to 30-cents per share. The existing voting power is fairly concentrated with CEO Mark Meller holding 76 percent of the voting power through his ownership of Class A Common and voting rights granted to Series B Preferred shares.
SILVERSUN FILES $8.5M OFFERING Featured
SilverSun Technologies, parent of Sage reseller SWK Technologies, has filed for a public offering to raise $8,533,000 through the sale of securities. But beyond merely raising money, the company plans to simplify its capital structure and get out of the bargain basement of stock listings and onto NASDAQ. Most of the offering, $8.05 million, will come from the sale of Class A Common Stock and the rest from warrants for that class of stock.
