RMG Networks To Raise USD40M

Adrian J Cotterill, Editor-in-Chief

RMG Networks Holding Corporation (NASDAQ: RMGN) announced today that it has priced an underwritten public offering of 5,000,000 shares of its common stock, at a public offering price of $8.00 per share.

logo_rmg-networks_fullblk-01The company has granted the underwriters a 45-day option to purchase up to an additional 750,000 shares of common stock. The offering is expected to close on or about August 2, 2013, subject to satisfaction of customary closing conditions. The company intends to use the proceeds of the offering to pay down debt and for general corporate purposes, including the funding of the company’s growth initiatives.

Roth Capital Partners is acting as sole book-running manager and Northland Capital Markets is acting as co-manager in the offering.

A registration statement on Form S-1 relating to this offering was declared effective by the Securities and Exchange Commission on July 29, 2013.

2 Responses to “RMG Networks To Raise USD40M”

  1. Chuck Billups Says:

    Interesting. It’s a closely held stock, so I’m sure the majority of folks getting diluted will benefit from the cash infusion. However, not so good for the few pedestrian investors who just lost 20% of their investment today. I think I got the market dynamics on that right, but let me know if I did not.

  2. Tom Milner Says:

    You heard it here first, watch out for RMG Networks taking over the world in the next few years!


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