SouthPeak Goes Public Through Acquisition

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Publisher SouthPeak Interactive has entered into a financial transaction that looks like a reverse acquisition that will transform SouthPeak into a publicly traded company.
While this sequence of financial maneuverings results in a publicly traded SouthPeak Interactive Corporation, it involves a complicated series of steps. First, SouthPeak Interactive is acquired by Global Services Partners Acquisition Corp. for 5,000,000 shares and $5 million in cash. Because the last sale price of Global Services Partners Acquisition Corp. was $5.22, this values SouthPeak at around $31 million.

At this point, the current management of Southpeak will take over the new company that will then be renamed to SouthPeak Interactive Corporation. Southpeak's Terry Phillips will be Chairman while Melanie Mroz will be Chief Executive Officer of the new (yet the same) company. once the transaction is complete (baring the exercise of certain warrants), SouthPeak management will own around 42% of the outstanding SouthPeak stock.

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This page contains a single entry by Editor published on January 16, 2008 4:49 PM.

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