By Sheri Kasprzak
New York, April 2 - Acorn Factor, Inc. sealed the first tranche of a private placement of convertible redeemable subordinated debentures for $4.281 million.
The 10% debentures are due March 2011. From the issuance date through the first anniversary, half of the debentures are convertible at $3.80 each. After the first anniversary, the whole of the debentures will be convertible at the same price. The conversion price is a 23.5% discount to the company's $4.97 closing stock price on Friday.
The investors also received warrants for 281,644 shares, exercisable at $4.50 each for five years.
Once a registration statement is effective, the company may redeem the debentures in part or whole at par plus interest.
If the company fails to redeem at least half of the debentures by the first anniversary of the closing date, interest will increase to 12% annually.
Located in Mahwah, N.J., Acorn, formerly known as Data Systems & Software Inc., develops clean energy technologies.
| Issuer: | Acorn Factor, Inc.
|
| Issue: | Convertible redeemable subordinated debentures
|
| Amount: | $4.281 million
|
| Maturity: | March 2011
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $3.80 (only half of principal initially convertible)
|
| Call: | Redeemable at par plus interest once registration statement is effective
|
| Warrants: | For 281,644 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $4.50
|
| Settlement date: | March 30
|
| Stock symbol: | OTCBB: ACFN
|
| Stock price: | $4.97 at close March 30
|
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