Cosmic Forward Ltd., a private company and a controlling stockholder, increased its stake in Professional Diversity Network Inc. to about 54.64% of Professional Diversity Network's outstanding common stock, the company said Jan. 19.
The company sold 312,500 shares of its common stock to Cosmic Forward at $9.60 per share, representing about 3.1% premium over the closing consolidated bid price of the company's common stock on Jan. 12. Professional Diversity Network received $3 million from the sale, and net proceeds of about $2.8 million giving effect to payment of transaction-related expenses.
The proposed transaction was approved and adopted by a special committee of the board, composed entirely of independent directors who are not Cosmic Forward board designees.
Aegis Capital Corp. acted as the exclusive placement agent in connection with the transaction. Greenberg Traurig LLP acted as legal counsel to the special committee of Professional Diversity Network's board, and White & Case LLP acted as legal counsel to CFL in connection with the transaction.