The Guitammer Company, an Ohio based company that develops and markets “4D” systems that translate low frequency sounds into tactile vibrations to enhance public or in-home entertainment experiences, recently listed an unregistered sale of equity securities, for a total consideration of $250,000. In a private transaction, the company sold 1,000,000 units for $0.25 per unit, with each unit consisting of one share of the company’s common stock plus a two year warrant to purchase one share of common stock for $.36 per share.
The company claims an exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended, since the sale did not involve a public offering, and the buyer took the shares for investment and not resale. The company took appropriate measures to restrict transfer of such shares and warrants.
The sale follows the growing company’s recent reporting of a 64% jump in annual revenues, together with a higher gross profit and stronger balance sheet. Revenues for the year ended December 31, 2012, were $2.13 million, with a gross margin of 40%. Nearly $1.5 million in debt has also been removed. In addition, roughly $1.7 million was raised in private placements during the year.
The company’s low frequency audio transducers are used around the world by leading entertainment and theater companies such as AMC, IMAX, and Disney, in movie theaters and attractions, as well as by world-famous musicians, in home theaters, for car audio, and for simulators, and the private placement funds will help support Guitammer’s aggressive growth strategy. The President of the company, Mark Luden, is on record as stating that he believes they are positioned for a “breakout year in 2013.”
For more information, visit www.guitammer.com
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