Engex, Inc. Issues Common Stock Pursuant to Stock Purchase Agreement With J. Morton Davis
October 01 2009 - 1:50PM
PR Newswire (US)
NEW YORK, Oct. 1 /PRNewswire-FirstCall/ -- Engex, Inc. (American
Stock Exchange: EGX) today announced that, as of the close of
business on September 30, 2009, Engex sold, pending regulatory
approval, 161,101 shares of Engex Common Stock to J. Morton Davis
for $953,397.88. Mr. Davis, the Chairman and principal shareholder
of the Fund, made the investment in order to increase Engex's net
asset value and stockholders' equity. The proceeds of the
investment were used to retire the Fund's margin debt so that, upon
completion of the sale of the shares, Engex no longer has any loans
outstanding. The shares were valued at $5.918 per share, which was
10% above the higher of the closing price and the net asset value
per share on September 30, 2009, in order to give the Fund the
benefit of a premium above the higher prevailing price. On
September 30, 2009, Engex's Common Stock closed at $5.38 on the
Amex and had a net asset value (prior to giving effect to the
issuance of the new shares) of $3.62. Engex, Inc. is a closed-end,
management investment company registered with the Securities and
Exchange Commission. DATASOURCE: Engex, Inc. CONTACT: Mr. Michael
Siciliano, Engex, Inc., +1-212-495-4524
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