Company sells 12% 18-month secured convertible notes with warrants
By Devika Patel
Knoxville, Tenn., March 4 - Digitiliti, Inc. settled a private placement of secured convertible promissory notes on Feb. 28, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal raised $1 million with an original issue discount of 10% for a principal of $1.1 million.
The 12% 18-month notes will convert to common shares at $0.20 per share.
In addition, the investors received warrants for 3,052,500 shares, which are exercisable at $0.30 for five years.
The conversion price is a 33.33% premium to the Feb. 25 closing share price of $0.15. The strike is a 100% premium to that price.
Based in St. Paul, Minn., Digitiliti provides data protection solutions to small- to medium-sized businesses and markets.
| Issuer: | Digitiliti, Inc.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $1.1 million
|
| Maturity: | 18 months
|
| Price: | 10% discount ($1 million)
|
| Coupon: | 12%
|
| Conversion price: | $0.20
|
| Warrants: | For 3,052,500 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.30
|
| Settlement date: | Feb. 28
|
| Stock symbol: | OTCBB: DIGI
|
| Stock price: | $0.15 at close Feb. 28
|
| Market capitalization: | $9.74 million
|
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