By Sheri Kasprzak
New York, March 9 - DynTek, Inc. said it has wrapped a $10,459,140 private placement of stock and notes.
The company issued $6.7 million in senior secured notes to SACC Partners, LP and Lloyd I. Miller, III and a $3 million junior secured convertible note.
The senior secured notes bear interest at 8% annually if paid in cash or at 11% annually if paid in stock, and mature on March 1, 2010.
The investors will receive warrants equal to 19.9% of the company's outstanding stock at the time of exercise. The warrants will be exercisable at $0.001 each through Dec. 31, 2016.
Proceeds from the senior secured note will be used to repay a portion of the outstanding principal and interest under a $6.8 million note held by Laurus Master Fund, Ltd.
The 10% junior secured convertible note matures on March 1, 2011 and is convertible into common shares at $0.02 each. The interest rate for the note will be 14% if interest is paid in stock.
Proceeds from this note offering will be used to reduce additional debt.
DynTek also closed a $759,140 private placement of stock. The company issued 37,957,000 shares at $0.02 each.
The company also issued warrants for 7,591,400 shares, exercisable at $0.02 each.
Placement agent Network 1 Financial Securities, Inc. may continue selling shares up to $4.5 million in proceeds.
The company has also entered into agreements with holders of $10.7 million in debt to convert $7.5 million into stock at $0.02 each.
Based in Irvine, Calif., DynTek provides professional technology services like voice-over-internet protocol services to mid-market clients like state and local governments and educational institutions.
Senior secured notes
| Issuer: | DynTek, Inc.
|
| Issue: | Senior secured notes
|
| Amount: | $6.7 million
|
| Maturity: | March 1, 2010
|
| Coupon: | 8% in cash, 11% in stock
|
| Price: | Par
|
| Yield: | 8% in cash, 11% in stock
|
| Warrants: | For 19.9% of the company's outstanding stock at exercise
|
| Warrant expiration: | Dec. 31, 2016
|
| Warrant strike price: | $0.001
|
| Investors: | SACC Partners, LP and Lloyd I. Miller, III
|
| Settlement date: | March 1
|
| Stock symbol: | OTCBB: DYTK
|
| Stock price: | $0.06 at close March 1
|
|
|
| Junior notes
|
| Issuer: | DynTek, Inc.
|
| Issue: | Junior secured convertible notes
|
| Amount: | $3 million
|
| Maturity: | March 1, 2011
|
| Coupon: | 10% in cash, 14% in stock
|
| Price: | Par
|
| Yield: | 10% in cash, 14% in stock
|
| Conversion price: | $0.02
|
| Warrants: | No
|
| Settlement date: | March 1
|
| Stock symbol: | OTCBB: DYTK
|
| Stock price: | $0.06 at close March 1
|
|
|
| Stock
|
| Issuer: | DynTek, Inc.
|
| Issue: | Stock
|
| Amount: | $759,140
|
| Shares: | 37,957,000
|
| Price: | $0.02
|
| Warrants: | For 7,591,400 shares
|
| Warrant strike price: | $0.02
|
| Placement agent: | Network 1 Financial Securities, Inc.
|
| Settlement date: | March 1
|
| Stock symbol: | OTCBB: DYTK
|
| Stock price: | $0.06 at close March 1
|
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