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Holiday RV Superstores Inc. the dealership chain doing business as Recreation USA, has completed the first round of a private equity exchange and announced it has received an extension from its primary floorplan lender.

The agreement between Recreation USA and its primary floorplan lender expired Nov. 30, but its lender has agreed to amend and extend the agreement through Jan. 22, according to Recreation USA.

The first round of the private equity placement involved the sale of $1.5 million worth of units consisting of convertible preferred stock and warrants. The proceeds will be used for working capital and general corporate purposes.

Each unit consists of 100 shares of Series A preferred stock and a warrant to buy 5,000 shares of common stock. The Series A preferred stock is being issued in two sub-series.

The warrants are not currently exercisable. The shareholders of Recreation USA need to approve voting rights for one of the sub-series of Series A preferred stock and the exercisability of the warrants.

Recreation USA hopes to privately place 350 units of Series A preferred stock and warrants for gross proceeds of up to $3.5 million