By Sheri Kasprzak
New York, March 6 - Narrowstep Inc. concluded a $7.11 million private placement of mandatory convertible notes.
The two-year 12% notes automatically convert into common shares at a 10% discount to the securities issued in any subsequent financing of at least $3 million or, in the event of the sale of the company before that time, shares of common stock valued at a 10% discount to the price per share paid in the sale of the company.
The investors also received warrants for 3.555 million shares, exercisable at $0.60 each for five years.
Narrowstep may exercise the right to force the cash exercise of the warrants if the stock trades at or above $1.80 per share for at least 20 consecutive trading days.
New York-based Narrowstep provides television content over the internet.
| Issuer: | Narrowstep Inc.
|
| Issue: | Mandatory convertible notes
|
| Amount: | $7.11 million
|
| Maturity: | Two years
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | At a 10% discount to the securities issued in any subsequent financing of at least $3 million or at the price per share if the company is sold
|
| Warrants: | For 3.555 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.60
|
| Settlement date: | March 6
|
| Stock symbol: | OTCBB: NRWS
|
| Stock price: | $0.86 at close March 5
|
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