CHICAGO, July 12 /CNW/ - JK&B Capital IV, L.L.C. ("JK&B"), announced today that it has acquired an additional 2,356,705 common shares of BakBone Software, Inc. ("BakBone") representing approximately 2.7% of the 87,373,674 outstanding common shares of BakBone after giving effect to the transaction. JK&B acts as manager of certain investment funds that own the common shares.
After giving effect to the transaction, JK&B and certain investment funds managed by JK&B own and control 11,474,582 common shares of BakBone representing approximately 13.1% of the total outstanding common shares of BakBone.
The common shares were issued to JK&B by BakBone as a result of BakBone's merger with ColdSpark, Inc. ("ColdSpark") that was completed in May 2009. Immediately prior to the merger, investment funds managed by JK&B owned preferred stock of ColdSpark. Pursuant to the terms of the merger, BakBone indirectly acquired ColdSpark in exchange for total consideration of US$15.938 million, consisting of $8.125 million in cash and 18,169,780 common shares of BakBone with a deemed value of $7.813 million, with payments extending over three years. JK&B's share of this consideration was 15,789,151 common shares and US$4,885,380 cash. Upon closing of the merger, BakBone paid JK&B cash of US$750,000 and issued 9,117,877 common shares and on July 8, 2010, BakBone issued 2,356,705 common shares to JK&B, consisting of 1,178,352 common shares issued in partial satisfaction of the remaining stock component of the merger consideration and 1,178,353 common shares issued in lieu of cash as partial consideration of the remaining cash component of the merger consideration.
JK&B acquired its common shares of BakBone as a result of BakBone's merger with ColdSpark. Prior to the merger, JK&B held its ColdSpark stock for investment purposes and JK&B holds its common shares of BakBone for investment purposes. Depending on market and other conditions, JK&B may, from time to time, increase or decrease its ownership, control or direction over the common shares or other securities of BakBone.
SOURCE JK&B CAPITAL IV, L.L.C.
For further information: For further information: Nancy O'Leary, (312) 946-1200