SilverSun has been working to get out of the penny stock world and accomplished a 30-for-1 reverse split last month to bring the number of outstanding shares down to 4,431,835 before the exercise of any new warrants. The offering ends on March 24 or when all securities are sold. The prospectus includes financial results for the nine months ended September 30 and we should be seeing earnings for 2014 for this month under normal practice. The major shareholders are CEO Mark Meller, with just over 2 million shares, and Jeff Roth, CEO of SWK, who owns slightly more than 1 million shares. Besides the stock split, the simplification of SilverSun's capital structure included the elimination of Series B Preferred Stock. The proposed use of proceeds is broad-based with the company displaying three use scenarios, depending on whether 50, 75 or 100 percent of the offering is sold. With a 100-percent sale, the company anticipates use of funds as follows: general working capital, $280,000; sales and marketing, $348,250; product development, $487,550; and capital expenditures, $277,200.
SILVERSUN OFFERING PRICED Featured
SilverSun, parent of Sage reseller SWK Technologies, has priced its public offering of stock and warrants. The company is offering 471,142 shares at $4.24 per share and 235,571 warrants to purchase common stock at one cent each for warrants, which have an exercise price of $5.34 per share, exercisable until five years from issuance. The issue is a best efforts offering which could result in net proceeds of slightly less than $1.4 million.
