National Holdings (OTC:NHLD) PIPE for $0.50 per Share

National Holdings Corporation (OTC:NHLD) has been very active today, jumping 25% to $0.35 per share on very heavy volume of nearly 1.4 million shares. NHLD is a holding company for National Securities Corporation, vFinance Investments, Inc., EquityStation, Inc., National Asset Management, Inc., and National Insurance Corporation. National Securities, vFinance and EquityStation are broker-dealers registered with the SEC, and members of FINRA and SIPC.

vFinance is also a member of the NFA. The three principal lines of business of the broker-dealers are offering full service retail brokerage; providing investment banking, merger, acquisition and advisory services to micro, small and mid-cap high growth companies; and trading securities, including making markets in over 4,000 micro and small-cap stock, distributing direct market access platforms, and providing liquidity in the United States Treasury marketplace. National Asset Management is a federally-registered investment advisor. National Insurance provides a full array of fixed insurance products to its clients.

On December 13, 2010, NHLD raised aggregate gross proceeds of $1,035,000 pursuant to a private placement of securities. NHLD entered into a subscription agreements with thirteen accredited investors, pursuant to which the Company sold and issued to the Investors an aggregate of 2,070,000 units at a purchase price of $0.50 per Unit. Each Unit is comprised of (i) one share of our common stock, par value $0.0001 per share, and (ii) a five-year warrant to purchase one share of Common Stock at a per share exercise price of $0.50 per share.

A total of 2,070,000 shares of Common Stock were issued in the Private Placement. In addition, Investor Warrants to purchase a total of 2,070,000 of Common Stock at the exercise price of $0.50 per share were issued pursuant to such closing. Investors were granted certain piggyback registration rights with respect to the shares of Common Stock purchased by them, including those underlying the Investor Warrants.

The Company received net proceeds of approximately $948,000 after payment of $62,100 of cash commissions to the placement agent of the Private Placement and other offering expenses and related costs in connection with the Private Placement. In addition, NHLD issued to the Placement Agent five-year warrants to purchase an aggregate of 200,000 shares of Common Stock, at an exercise price of $0.50 per share.

Distributed by IntelBuilder Social Media Platform