Company sells term promissory note with warrants to Columbus Capital
By Devika Patel
Knoxville, Tenn., June 7 – Cachet Financial Solutions, Inc. settled a private placement of $1,052,632 convertible term promissory notes with Columbus Capital Partners, LP on June 1, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The note includes an original issue discount of $52,632 for $1 million of proceeds.
The note is due on June 1, 2017 and is initially convertible into common shares at $0.37 per share. The conversion price is a 2.78% premium to the May 31 closing share price of $0.36. The company may force conversion.
Columbus also received warrants for 2,560,456 shares. The warrants are each exercisable at $0.37 for five years. The strike price is also a 2.78% premium to the May 31 closing share price.
Minneapolis-based Cachet is a cloud-based software-as-a-service provider of remote deposit capture and mobile wallet solutions.
| Issuer: | Cachet Financial Solutions, Inc.
|
| Issue: | Convertible term promissory note
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| Amount: | $1,052,632
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| Maturity: | June 1, 2017
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| Price: | $1 million ($52,632 discount)
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| Conversion price: | $0.37
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| Conversion premium: | 2.78%
|
| Call: | Yes
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| Warrants: | For 2,560,456 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.37
|
| Investor: | Columbus Capital Partners, LP
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| Settlement date: | June 1
|
| Stock symbol: | OTCBB: CAFN
|
| Stock price: | $0.36 at close May 31
|
| Market capitalization: | $14.98 million
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