Investors include Hillair Capital; Rodman & Renshaw is deal's agent
By Devika Patel
Knoxville, Tenn., Feb. 25 - Digital Angel Corp. said it plans to settle a private placement of 16% senior secured debentures on Friday. The deal will raise $2 million. Hillair Capital Investments LLC is among the investors and Rodman & Renshaw, LLC is the agent.
The debentures mature July 1, 2012.
In addition, investors received warrants for 8 million common shares. The warrants are exercisable at $0.45, with half exercisable until July 1, 2012 and the remainder exercisable for five years. The strike price reflects a 10% discount to the Feb. 24 closing share price of $0.50.
Proceeds will be used for working capital and other general corporate purposes.
Based in South St. Paul, Minn., Digital Angel is a developer of global positioning satellite and radio frequency identification technology.
| Issuer: | Digital Angel Corp.
|
| Issue: | Senior secured debentures
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| Amount: | $2 million
|
| Maturity: | July 1, 2012
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| Coupon: | 16%
|
| Warrants: | For 8 million shares
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| Warrant expiration: | Five years (for 4 million shares), July 1, 2012 (for 4 million shares)
|
| Warrant strike price: | $0.45
|
| Agent: | Rodman & Renshaw, LLC
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| Investor: | Hillair Capital Investments LLC
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| Pricing date: | Feb. 24
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| Settlement date: | Feb. 25
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| Stock symbol: | OTCBB: DIGA
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| Stock price: | $0.50 at close Feb. 24
|
| Market capitalization: | $12.54 million
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