Alanco Technologies, Inc. to Raise Approximately
$500,000 in Registered Direct Offering
July 09, 2010 03:18 PM Eastern Daylight Time
SCOTTSDALE, Ariz.--(EON: Enhanced Online News)--Alanco Technologies, Inc. (NASDAQ: ALAN)
announced today that it has received commitments from certain institutional investors to purchase an aggregate of
approximately $500,000 of Alanco’s securities in a registered direct offering.
Alanco expects to receive net proceeds of approximately $460,000 after deducting placement agent fees and other
offering expenses. Alanco has entered into a securities purchase agreement with these investors pursuant to which
Alanco has agreed to sell an aggregate of up to 2,173,913 shares of Common Stock and Warrants exercisable for
up to 760,871 additional shares of its Common Stock. Each unit, consisting of one share of Common Stock and
0.35 of a Warrant to purchase a share of Common Stock, will be sold for a purchase price of $0.23 per unit.
The Warrants to purchase additional shares will be exercisable at an exercise price of $0.33 per share beginning
immediately and will expire three years from the date that the Warrants are issued. Alanco expects to use the net
proceeds of the offering for working capital and other general corporate purposes, including, without limitation, for
the funding of potential acquisitions of other businesses. Source Capital Group acted as the exclusive placement
agent for the transaction.
The offering is made pursuant to the Company's shelf registration statement on Form S-3 (File No. 333-163288),
which was declared effective by the Securities and Exchange Commission on December 30, 2009. The Company,
pursuant to Rule 424(b) under the Securities Act of 1933, shall file with the Securities and Exchange Commission a
prospectus supplement relating to the offering. Copies of the final prospectus and accompanying prospectus
supplement relating to the offering may be obtained from the SEC's website at http://www.sec.gov.
Alanco Technologies, Inc