Answers issues $7 Million second tranche warrant

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Answers issues $7 Million second tranche warrant
New York: The creator of answer engines like answer.com and Wikianswers.com, Answers Corporation has announced the exercise of the second tranche warrant, issued in relation with the its June '08 financing by Red Point Ventures, a firm specializes in early stage and growth capital investments for the Internet and technology sectors, and the Answer's largest stockholder. "We are very pleased to see this further commitment from our biggest investor, this investment confirms their support and confidence in our vision to build the world's best Q&A site." said Robert S. Rosenschein, Chairman and CEO, Answers Corporation. Answers issued $7 million of Series B convertible preferred stock, convertible into 1,272,727 shares of common stock at a conversion price of $5.50 per share, and a warrant exercisable for 636,364 shares of common stock at an exercise price of $6.05 per share, on exercise of the warrant on June 10, 2009. Redpoint's Tom Dyal, previously an Answers board observer, has joined the Company's board of directors as a full member, Redpoint's second representative on the board, as a part of the investment. The company has also agreed to file a registration with the Securities and Exchange Commission covering the resale of the shares of common stock issuable upon conversion of the Series B Convertible Preferred Stock and exercise of the warrants and shares issued for the payment in kind of accrued dividends.