Series A preferreds sold at $10.00 apiece to Hale Capital Partners
By Devika Patel
Knoxville, Tenn., Sept. 17 - Falconstor Software, Inc. settled a $9 million private placement of its series A convertible preferred stock with Hale Capital Partners, LP on Sept. 16, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The company sold 900,000 preferreds at $10.00 apiece.
Each preferred converts to common stock at $1.02488 per share, which is a 16.68% discount to the Sept. 13 closing share price of $1.23. The preferreds accrue dividends at Prime plus 500 basis points.
The Melville, N.Y., company offers disk-based data protection.
| Issuer: | Falconstor Software, Inc.
|
| Issue: | Series A convertible preferred stock
|
| Amount: | $9 million
|
| Preferrreds: | 900,000
|
| Price: | $10.00
|
| Dividends: | Prime plus 500 bps
|
| Conversion price: | $1.02488
|
| Warrants: | No
|
| Investor: | Hale Capital Partners, LP
|
| Settlement date: | Sept. 16
|
| Stock symbol: | Nasdaq: FALC
|
| Stock price: | $1.23 at close Sept. 13
|
| Market capitalization: | $53.3 million
|
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