Strategy First Announces Silverstar Holding's Commitment for $9 Million Private Placement of Common Stock
Posted by: Aaron Lockard on July 16, 2007 4:38:32 PM (117 Reads)

Strategy First has received the commitment for a $9 million private placement of common stock with institutional investors and management.

Strategy First Inc., a wholly owned subsidiary of Silverstar Holdings, Ltd. (Nasdaq:SSTR) announced that Silverstar has received the binding commitment for a $9 million private placement of common stock and warrants with institutional investors and management. Silverstar sold a total of 6,206,890 shares at $1.45 per share. Investors will also receive five year warrants to purchase approximately 4,344,826 shares of common stock at $2.10 per share. Clive Kabatznik, CEO, and Michael Levy, Chairman, invested in the deal.

The terms of the definitive agreements require Silverstar to obtain the approval of its shareholders for the issuance of shares above 19.99% of its currently outstanding common stock. The Company has agreed to file a registration statement for the first 19.99% of shares issued, and will schedule a special shareholder meeting to vote on approval of the additional shares and other matters. A second registration statement will be filed once approved.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned in this release. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act of 1933, as amended. These securities described in this release have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent and effective registration statement covering such securities or an applicable exemption from such registration requirements.

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