By Sheri Kasprzak
Atlanta, April 5 - Farmstead Telephone Group, Inc. revealed the details of its previously announced $3 million private placement.
The company issued a $2.5 million secured revolving note and a $500,000 secured convertible minimum borrowing note to Laurus Master Fund Ltd.
Both of the notes mature in three years and bear interest at Prime plus 200 basis points with a 6% floor.
The notes may be converted into common shares at $1.54 each and the company may force conversion if its stock trades 15% above the conversion price for five consecutive trading days in any month.
Laurus also received warrants for 500,000 shares, exercisable at $1.82 each for five years.
Based in East Hartford, Conn., Farmstead sells, installs and maintains business communications products for Avaya Inc.
| Issuer: | Farmstead Telephone Group, Inc.
|
| Issue: | Secured revolving note and secured convertible minimum borrowing note
|
| Amount: | $3 million
|
| Maturity: | Three years
|
| Coupon: | Prime plus 200 basis points, 6% floor
|
| Conversion price: | $1.54
|
| Call: | May force conversion if stock price is 15% above conversion price for five consecutive trading days in any month
|
| Warrants: | For 500,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.82
|
| Investors: | Laurus Master Fund Ltd.
|
| Settlement date: | March 31
|
| Stock price: | $2.30 at close March 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.
