The offering is expected to close on February 29, 2008. In connection with the offering, the company has also agreed to issue warrants to purchase an additional one million shares of its common stock with an exercise price of $1.60 per share. There were no discounts or brokerage fees associated with the offering.
Under the terms of the offering, the company may, in its sole discretion, repurchase the shares at any time until December 31, 2009, for $2 per share or, at any time between January 1, 2010 and December 31, 2010, for $2.50 per share. The company’s repurchase right terminates after December 31, 2010.