Milwaukee-based ARI Network Services Inc., a provider of software and data solutions, announced it has entered into definitive agreements with investors in a private placement of $4.8 million of its common stock at a purchase price of $1.50 per share.
In addition, the company will issue to the investors warrants to purchase 1,066,667 shares of common stock at a price of $2 per share.
The company plans to use most of the proceeds from the transaction to pay down debt incurred from recent acquisitions. In November the company acquired the retail division assets of 50 Below Sales & Marketing Inc. of Duluth, Minn. In August the company acquired the assets of Ready2Ride Inc. of Floyds Knobs, Ind.
“This event will significantly enhance our balance sheet, and with the integration of our two most recent acquisitions underway, we are now well positioned to further advance our competitive standing in the marketplace and take advantage of strategic opportunities,” said Roy Oliver, present and chief executive officer of ARI.
