Invesque Inc. upsized a private placement of its class A convertible preferred shares launched in December 2017 with certain funds managed by Magnetar Financial LLC.
The parties agreed to increase the offered series 2 preferred shares to 3,172,086 from 2,907,745 to raise proceeds to approximately US$30.0 million from the original target of US$27.5 million. The shares were priced at US$9.4575 apiece, reflecting a 3% discount to the US$9.75 initial liquidation preference of such shares, according to a release from Invesque.
Additionally, Magnetar has agreed to subscribe for 1,586,042 class A series 3 convertible preferred shares for US$9.4575 apiece. The company estimates gross proceeds of roughly US$15.0 million from the offering.
The first tranche of the offering closed Dec. 22, 2017, and raised gross proceeds of US$26.5 million from the sale of 2,802,009 preferred shares offered at US$9.4575 per share.
The company, formerly known as Mainstreet Health Investments, said it has obtained shareholder consent approving the placement.
The parties' subscription agreement may be terminated if the second private placement does not close by April 30 or the third placement does not close by May 31, according to the release.
Proceeds from the offering will be used to fund future acquisitions and a proposed purchase of three memory care communities, to repay debt, and for working capital purposes, the healthcare real estate company said in an earlier report.
