Original issue discount debentures sold by Oppenheimer, JMP Securities
By Devika Patel
Knoxville, Tenn., April 5 - InspireMD, Inc. said it completed a private placement of $11.7 million of original issue discount senior secured convertible debentures, which were sold at a discount for $11 million.
The 8% debentures are convertible into common stock at $1.75 per share and due April 5, 2014. The company may force conversion, and the notes may be put at 112 plus interest after 18 months.
The investors also received 50% warrant coverage. The warrants are each exercisable at $1.80 for five years.
The strike price is a 28.57% premium to the April 4 closing share price of $1.40. The conversion price is a 25% premium to that price.
Oppenheimer & Co. Inc. was the lead agent; JMP Securities LLC was co-lead placement agent.
Proceeds will be used for clinical trials, expanding sales and marketing and general working capital.
InspireMD is a Tel Aviv, Israel, medical device company developing its proprietary stent system technology, MGuard.
Issuer: | InspireMD, Inc.
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Issue: | Original issue discount senior secured convertible debentures
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Amount: | $11.7 million
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Maturity: | April 5, 2014
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Coupon: | 8%
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Price: | $11 million
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Conversion price: | $1.75
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Call: | Yes
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Put: | At 112, after 18 months
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Warrants: | 50% coverage
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Warrant expiration: | Five years
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Warrant strike price: | $1.80
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Agents: | Oppenheimer & Co. Inc. (lead), JMP Securities LLC (co-lead)
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Settlement date: | April 5
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Stock symbol: | OTCBB: NSPR
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Stock price: | $1.40 at close April 4
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Market capitalization: | $98.86 million
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