Business
FRMO Corp. Announces May 2013 Transactions and Date of Annual Meeting of Shareholders
FRMO Corp. Announces May 2013 Transactions and Date of Annual Meeting of Shareholders.
About this update from Frmo Corp.
[{"type":"text","content":" Normal 0 false false false EN-US X-NONE HE Normal 0 false false false EN-US X-NONE HE /* Style Definitions */ table.MsoNormalTable\t{mso-style-name:\"Table Normal\";\tmso-tstyle-rowband-size:0;\tmso-tstyle-colband-size:0;\tmso-style-noshow:yes;\tmso-style-priority:99;\tmso-style-parent:\"\";\tmso-padding-alt:0in 5.4pt 0in 5.4pt;\tmso-para-margin:0in;\tmso-para-margin-bottom:.0001pt;\tmso-pagination:widow-orphan;\tfont-size:10.0pt;\tfont-family:\"Times New Roman\",\"serif\";\tmso-bidi-language:HE;}FRMO Corp. (FRMO-OTC-PINK) (\"FRMO\" or \"Company\") today announced the completion of threepreviously communicated transactions. The first was a private placement of FRMOshares for certain accredited investors. The second was to amend the terms of theCompany's product-specific revenue interests in products managed by HorizonKinetics LLC (\"Horizon Kinetics\") and its subsidiaries so as to receive asingle revenue interest in the gross revenues of Horizon Kinetics. The thirdwas the exchange of certain privately held units of Horizon Kinetics for sharesof FRMO. PrivatePlacement CompletedPursuant to a private placement, the Companyinvited subscriptions from certain accredited investors to purchase up to amaximum of 1,730,103 shares of its common stock at $2.89 per share.Subscriptions were received by April 15, 2013 from 72 investors for 100% of theshares offered by the Company. The subscriptions were accepted by the Company,and the shares were issued on May 1, 2013 when the Company received payment of $4,999,997.67.Adjustmentof Product-Specific Revenue InterestsBy agreement dated April 16, 2013, the Companyamended the terms of its product-specific revenue interests in certain productsmanaged by Horizon Kinetics and its subsidiaries: (i) a mutual fund, (ii) twoprivate investment funds, (iii) a consultative relationship with aninstitutional investor and, (iv) an institutional separate account. Thetransaction was consummated at the close of business on May 31, 2013. FRMO willnow receive a single revenue interest equal to 4.199% of the gross revenues ofHorizon Kinetics. As a result of this transaction, the Company expectsto realize a gain in the transaction equal to the value of the 4.199% interestat the close of business May 31, 2013 less the cost basis of the revenueinterests in the Horizon Kinetics related products transferred to Hor...