Orchid Corp. is offering 150,000 shares of stock to the public in a best efforts cash offer. The offer price is $27 per share and the underwriter's spread is 8.2 percent. The administrative costs are estimated at $280,000. What will be the net proceeds from this stock offering assuming only 95 percent of the issue is sold?

1. $3,266,005

2. $3,532,000

3. $ 3,567,500

4. $ 3,252,0055

5. $ 3,847,500