Research Solutions Inc. on Monday announced it has entered into a private placement agreement with an institutional investor along with the company’s directors and management to purchase $5.2 million in equity.
Under the terms of the deal, the private placement consists of 5.2 million shares at $1 each, totaling $5.2 million in gross proceeds before fees and expenses.
Each share of common stock also includes a warrant to purchase three-tenths of another share of common stock at the price of $1.25. The warrants can be redeemed anytime within five years of the issuance date.
The Encino company provides science, technology and medical researchers with journal articles. Research Solutions will use the money to develop and market the next generation of its Article Galaxy research intelligence software-as-a-service (SaaS) platform.
“Research Solutions is very excited about this investment in our company,” Chief Executive Peter Derycz said in a statement. “We look forward to accelerating the development of our best-in-class SaaS research platform for businesses and business professionals worldwide.”
Shares closed down 5 cents, or 5 percent, to 95 cents on the over-the-counter market.