Market Overview

Benzinga's Microcap Movers for Friday October 12, 2012


Below are highlights from Benzinga's daily coverage of small cap and microcap securities making big moves:


Shares of Motricity (NASDAQ: MOTR), the Bellevue, WA provider of relevance-driven mobile merchandising, marketing, and advertising solutions, rose 14.96% Friday on 7.5 times average volume.

Motricity announced Thursday the results of its previously announced rights offering of July 23, 2012. The Company distributed 46,163,685 subscription rights to the holders of its common stock. Each subscription right entitled the holder thereof to purchase, for a subscription price of $0.65 per unit, a unit consisting of 0.02599 shares of 13% Redeemable Series J Preferred Stock (the "Series J Preferred Stock") and 0.21987 warrants to purchase a share of common stock at an exercise price of the greater of $0.65 and 120% of the closing price of the common stock on the date of issuance. The Rights Offering expired on October 3, 2012 and the exercise price for the Common Stock Warrants was fixed at $0.65.

The Rights Offering was fully subscribed with total basic subscription privileges and over-subscription privileges being exercised for an aggregate of 1,199,643 shares of Series J Preferred Stock and 10,149,824 Common Stock Warrants. All subscription rights that were not exercised by 5:00 p.m., New York City time, on October 3, 2012 have expired.

Motricity expects to receive net proceeds of approximately $28 million from the Rights Offering. Carl Icahn will hold 30.7% of the stock and 14.7% of the voting power in motricity. Motricity closed at $0.46 on Friday.


TranS1 (NASDAQ: TSON), the Wilmington, NC medical device company, rose 13.90% Friday on 2.5 times average volume.

In an 8-K filing Friday, TranS1 stated: On October 9, 2012, TranS1 Inc., a Delaware corporation, entered into a Distribution Agreement with Jiade Sunshine, pursuant to which Jiade will be the exclusive distributor of the Company's AxiaLIF products in the People's Republic of China, with the exception of Hong Kong, Macau and Taiwan. Jiade has agreed to use its commercial best efforts to promote, market, sell and manage the distribution of the AxiaLIF products within the specified territory.

Under the Agreement, Jiade has agreed to place an initial order for a specified minimum amount of products within 30 days after the effective date of the Agreement, and to place additional orders on at least an annual basis for a specified minimum amount of products. The initial order will total a minimum of $1,360,000.

The Agreement has an initial term of four years and is renewable for up to four one-year renewal periods. The Agreement may be terminated by the Company if Jiade fails to fulfill the minimum purchase requirements. The Agreement may be terminated by either party for cause as specified in the Agreement.

TranS1 closed at $2.95 on Friday.

Crumbs Bake Shop

Shares of Crumbs Bake Shop (NASDAQ: CRMB), the New York City baker of cupcakes and other goods, rose 13.60% Friday on light volume.

On October 10, 2012, Crumbs Bake Shop entered into a Securities Purchase Agreement with Special Situations Fund III QP, L.P., Special Situations Cayman Fund, L.P., Special Situations Private Equity Fund, L.P., Buckingham RAF Partners, L.P., Buckingham RAF Partners II, L.P., Buckingham RAF International Partners Master Fund, LP, Whitney Capital Series Fund LLC - Series LS1, Durban Capital LP, John Mills, P.A.W. Partners, L.P., P.A.W. Small Cap Partners, L.P., Prism Partners I, L.P., Prism Partners III Leveraged, L.P., Prism Partner IV Leveraged Offshore Fund, Arthur J. Samberg, Leonard Potter, Frederick Kraegel, Jeffrey Roseman, Mark Klein, and Julian Geiger. Pursuant to the Purchase Agreement, the Company agreed to sell an aggregate 4,456,968 shares of the Company's common stock, par value $.0001 per share, to the Investors at a purchase price of $2.21 per Share.

The Company expects the closing of the Transaction and the sale of the Shares to take place on October 11, 2012. The Company will receive aggregate gross proceeds of $9,849,900 as a result of the Transaction. After deducting the expenses of the Transaction, the Company anticipates that its net proceeds will be approximately $9,315,000. The Company intends to use these proceeds to fund new store growth and for general working capital purposes.

Crumbs Bake Shop closed at $2.84 on Friday.

The information in this article is taken from public sources, press releases, and websites that cannot always be verified. Please note that investing in microcap stocks is highly speculative. The companies mentioned here are for information purposes only. Benzinga makes no claim as to the suitability of these stocks as an investment. Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

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