Paradigm Closes $6.2 Million Private Placement
The sale consisted of 6,206 shares of series A-1 senior preferred stock, class A warrants to purchase up to an aggregate of around 79.6 million shares of common stock with an exercise price equal to $0.0780 per share, and class B warrants to purchase up to an aggregate of around 69.1 million shares of common stock at an exercise price of $0.0858 per share.
Paradigm made the sale to a group of investors led by Hale Capital Partners, LP.
The company said it would use $4 million of the net proceeds to pay down debt and for general working capital purposes.
In connection with the private placement, the company also said it would exchange 1,700 shares of its outstanding series A preferred stock for an aggregate of around 21.8 million shares of common stock and repurchase 100 shares of series A preferred Stock for a cash payment to certain shareholders of an aggregate of around $111,000.
Rockville, Maryland-based Paradigm Holdings is a provider of information technology and business solutions for U.S. Federal Government enterprises. Paradigm specializes in information assurance solutions involving cyber security and forensics as well as continuity of operations and disaster recovery planning.
The company also provides systems engineering and IT infrastructure support solutions. Paradigm employs around 200 people.
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