Company offers 11% convertible notes along with 35% warrant coverage
By Devika Patel
Knoxville, Tenn., Oct. 21 – Marathon Patent Group, Inc. completed a $50,000 second tranche of a $5.55 million private placement of 11% convertible notes on Oct. 16, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal raised $5.5 million on Oct. 9.
The notes, which mature in four years, are initially convertible into common stock at $15.00 per share, a 5.12% premium to the Oct. 8 closing share price of $14.27. The notes are subject to mandatory conversion.
Investors also received 35% warrant coverage, or warrants for 128,333 shares in the first tranche and warrants for 1,166 shares in the second tranche. Each of the warrants is exercisable at $16.50 for two years. The strike price is a 15.63% premium to the Oct. 8 closing price.
Marathon is an intellectual property consulting company based in Los Angeles.
| Issuer: | Marathon Patent Group, Inc.
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| Issue: | Convertible notes
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| Amount: | $5.55 million
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| Maturity: | Four years
|
| Coupon: | 11%
|
| Conversion price: | $15.00
|
| Call: | Yes
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| Warrants: | 35% coverage (warrants for 128,333 shares in the first tranche, warrants for 1,166 shares in the second tranche)
|
| Warrant expiration: | Two years
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| Warrant strike price: | $16.50
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| Settlement dates: | Oct. 9 (for $5.5 million), Oct. 16 (for $50,000)
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| Stock symbol: | Nasdaq: MARA
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| Stock price: | $14.27 at close Oct. 8
|
| Market capitalization: | $72.05 million
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