By Laura Lutz
Des Moines, Aug. 10 - eMagin Corp. secured a $2.5 million secured revolving loan note facility with Moriah Capital, LP. Up to $2 million of the amount that eMagin actually borrows will be convertible into common stock.
The loan will bear interest at Prime rate plus 200 basis points, subject to a maximum interest rate of 10%.
The conversion price will be $1.50 per share.
The agreement expires on Aug. 7, 2008.
eMagin may extend it for an additional year by issuing at least $195,000 of stock to Moriah. The value of the stock will be determined using the average closing price of the company's stock for the 10 trading days immediately before the extension.
The funds may be drawn down in tranches of at least $25,000 up to five times each month. eMagin may not borrow more than 90% of its eligible accounts, net of taxes, discounts, allowances and credits, plus 50% of its eligible inventory capped at $600,000.
Based in Bellevue, Wash., eMagin produces electronic displays.
| Issuer: | eMagin Corp.
|
| Issue: | Secured revolving loan note facility
|
| Amount: | $2.5 million; up to $2 million convertible
|
| Tenor: | Aug. 7, 2008
|
| Coupon: | Prime rate plus 200 bps
|
| Price: | Par
|
| Conversion price: | $1.50
|
| Investor: | Moriah Capital, LP
|
| Settlement date: | Aug. 7
|
| Stock symbol: | OTCBB: EMAN
|
| Stock price: | $1.06 at close Aug. 10
|
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