By Laura Lutz
Des Moines, Sept. 13 - Delphax Technologies Inc. closed the second phase of a $7 million securities purchase agreement with Whitebox Delphax, Ltd., an affiliate of Whitebox Advisors, LLC.
In this round, the company issued a 12% secured subordinated promissory note in principal amount of $7 million.
The note matures in five years and bears interest at 12% per year.
The second phase also included a warrant for 6,300,000 shares.
The first phase of the financing, which closed on March 26, consisted of a 12% secured subordinated promissory note in principal amount of $900,000 and a warrant for 1,200,000 shares. That note matures in February 2008.
The warrants are exercisable at $1.28 if the exercise price is paid in cash or at $1.00 if the exercise price is paid by surrender of indebtedness.
Of the new proceeds, $900,000 was used to repay a 12% secured subordinated promissory note from the first round of financing on March 26. That note, which was also held by Whitebox, matures in February 2008.
Another $3 million of the proceeds were used to pay off $3 million of other subordinated debt due February 2008 that was owed to affiliates of Whitebox.
Proceeds will be used to repay the subordinated notes issued in 2004 and for general corporate purposes.
Based in Minneapolis, Delphax makes digital print production systems.
| Issuer: | Delphax Technologies Inc.
|
| Issue: | Secured subordinated promissory note
|
| Amount: | $7 million
|
| Maturity: | February 2008 (for $900,000 principal amount until extension); 2012 (for $6.1 million principal amount; for $900,000 principal amount upon extension)
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Warrants: | For 7.5 million
|
| Warrant strike price: | $1.28 in cash or $1.00 principal amount of notes
|
| Investor: | Fund managed by Whitebox Advisors, LLC
|
| Announcement date: | March 27
|
| Settlement date: | March 26 (for first phase); Sept. 10 (for second phase)
|
| Stock symbol: | Nasdaq: DLPX
|
| Stock price: | $1.15 at close March 27; $0.94 at close Sept. 10
|
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