Company sells 21.44 million shares and warrants at 45.76% discount
By Toni Weeks
San Diego, April 20 - Catasys, Inc. priced a $3.43 million private placement of stock and warrants on April 17, according to an 8-K filed Friday with the Securities and Exchange Commission.
The company will sell 21.44 million common shares at $0.16 apiece and warrants to purchase 21.44 million shares to Socius Capital Group, LLC, an affiliate of chairman and chief executive officer Teren S. Peizer and company affiliate David Smith. The warrants are each exercisable for five years at $0.16. The per-share price and the strike price are a 45.76% discount to the April 16 closing share price of $0.295.
Concurrent with the offering, Catasys agreed to exchange the $975,000 senior secured convertible promissory note issued to Socius on Feb. 22 and amended on April 11 for common stock and warrants on the same terms as the offering. Catasys said in the filing that it will have no notes or similar debt outstanding following the exchange.
The health care services management company is based in Los Angeles.
| Issuer: | Catasys, Inc.
|
| Issue: | Common shares
|
| Amount: | $3,430,408
|
| Shares: | 21,440,050
|
| Price: | $0.16
|
| Warrants: | For 21,440,050 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.16
|
| Investors: | Socius Capital Group, LLC, affiliate of Teren S. Peizer and David Smith (for $1.33 million)
|
| Pricing date: | April 17
|
| Stock symbol: | Pink Sheets: CATS
|
| Stock price: | $0.295 at close April 16
|
| Market capitalization: | $8.48 million
|
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