ICO enters into share placement agreement

Jun 09, 2008 (M2 EQUITYBITES via COMTEX) -- ICOHA | Quote | Chart | News | PowerRating -- ICO Global Communications (Holdings) Limited (ICO) (Nasdaq:ICOG), a satellite communications company, on Friday (6 June) announced that the company has entered into a securities purchase agreement (SPA) with a small group of institutional investors for sale of shares.

Under the SPA, ICO will issue and sell 6,515,697 shares of its Class A common stock at a price equal to the 20 day moving average of ICO's closing price as quoted on Nasdaq, less a discount of 5%.

The sale will reportedly result in aggregate gross proceeds of USD23.5m, which equates to approximately 3% dilution to ICO's fully diluted shares outstanding.

ICO said that it intends to use the proceeds from the offering to support its current business activities.

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