By Sheri Kasprzak
New York, Nov. 1 - Exabyte Corp. said it completed a $9.5 million private placement of 10% secured convertible notes.
The notes, which were sold to Meritage Entrepreneurs Fund, LP, Meritage Private Equity Fund, LP and Meritage Private Equity Parallel Fund, LP, mature on Sept. 30, 2010 and are initially convertible into common shares at $2.80 each.
One month after the original issue date, the conversion price will be adjusted to equal the average of the daily volume weighted average price for the five trading days immediately before conversion if the average is less than $2.80. There is a $1.80 floor for the conversion price.
The investors also received warrants for 4.75 million shares, exercisable at $2.80 each for five years.
The company completed a 10-for-1 reverse stock split on Oct. 31.
Proceeds from the note offering will be used for working capital.
Based in Boulder, Colo., Exabyte develops tape backup, restoration and archival technologies.
| Issuer: | Exabyte Corp.
|
| Issue: | Secured convertible notes
|
| Amount: | $9.5 million
|
| Maturity: | Sept. 30, 2010
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $2.80
|
| Warrants: | For 4.75 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.80
|
| Investors: | Meritage Entrepreneurs Fund, LP, Meritage Private Equity Fund, LP, Meritage Private Equity Parallel Fund, LP
|
| Settlement date: | Oct. 31
|
| Stock price: | $1.90 at close Oct. 31
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
