Original issue discount debentures sold for $11 million, a 6% discount
By Devika Patel
Knoxville, Tenn., April 9 - InspireMD, Inc. gave further details about a private placement of $11.7 million of original issue discount senior secured convertible debentures, which were sold at a 6% discount for $11 million on April 5, in an 8-K filed Monday with the Securities and Exchange Commission.
The maturity date is April 5, 2014.
The 8% debentures are convertible into common stock at $1.75 per share. The company may force conversion if the closing price of its stock is 165% or more of the conversion price for 20 consecutive trading days and the minimum daily trading volume is $1.1 million.
The company can redeem the notes after six months, and the notes may be put at 112 plus interest after 18 months.
The investors also will receive 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 purposes.
InspireMD is a Tel Aviv, Israel, medical device company developing its proprietary stent system technology, MGuard.
| Issuer: | InspireMD, Inc.
|
| Issue: | Original issue discount senior secured convertible debentures
|
| Amount: | $11,702,128
|
| Maturity: | April 5, 2014
|
| Coupon: | 8%
|
| Price: | $11 million (6% discount)
|
| Conversion price: | $1.75
|
| Call option: | After six months
|
| Put option: | At 112 after 18 months
|
| Warrants: | 50% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.80
|
| Agent: | Oppenheimer & Co. Inc. (lead), JMP Securities LLC (co-lead)
|
| Settlement date: | April 5
|
| Stock symbol: | OTCBB: NSPR
|
| Stock price: | $1.40 at close April 4
|
| Market capitalization: | $98.86 million
|
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