Notes carry 7% coupon, convert at 218.18% premium, mature Dec. 4, 2015
By Devika Patel
Knoxville, Tenn., Dec. 9 - Edgewave, Inc. settled a $4.5 million private placement of secured subordinated convertible promissory notes on Dec. 5, according to an 8-K filed Friday with the Securities and Exchange Commission.
The notes were issued at par, are due on Dec. 4, 2015, bear interest at 7% and are convertible into common stock at $0.70 per share, which is a 218.18% premium to the Dec. 4 closing share price of $0.22. They may be prepaid.
ATA Affiliates Fund II, LP, ATA Investment Fund II, LP, ATA Ventures II, LP and RWI Ventures II, LP were the investors.
Proceeds will be used for general corporate purposes, including working capital. The company also said it prepaid $2.99 million of convertible notes, which were issued in 2010.
Based in San Diego, Edgewave develops and markets on-demand, on-premises, and hybrid Secure Content Management solutions to the mid-enterprise and service provider markets.
| Issuer: | Edgewave, Inc.
|
| Issue: | Secured subordinated convertible promissory notes
|
| Amount: | $4.5 million
|
| Maturity: | Dec. 4, 2015
|
| Coupon: | 7%
|
| Price: | Par
|
| Conversion price: | $0.70
|
| Conversion premium: | 218.18%
|
| Call: | Yes
|
| Warrants: | No
|
| Investors: | ATA Affiliates Fund II, LP, ATA Investment Fund II, LP, ATA Ventures II, LP and RWI Ventures II, LP
|
| Settlement date: | Dec. 5
|
| Stock symbol: | OTCBB: EWVE
|
| Stock price: | $0.22 at close Dec. 5
|
| Market capitalization: | $3.73 million
|
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