2% notes due Dec. 31, 2021 offered with warrants for 2 million shares
By Devika Patel
Knoxville, Tenn., Nov. 19 – Netlist, Inc. settled a $15 million private placement of senior secured convertible promissory notes with SVIC No. 28 New Technology Business Investment LLP on Nov. 18, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The 2% note is due on Dec. 31, 2021 and is convertible into common shares at $1.25 per share, which is a 95.31% premium to the Nov. 17 closing share price of $0.64.
SVIC also received warrants for 2 million shares, which expire on Dec. 31, 2025 and are only exercisable if the company elects to redeem the convertible before maturity. The warrants are each exercisable at $0.30, which is a 53.13% discount to the Nov. 17 closing share price.
Irvine, Calif.-based Netlist designs, manufactures and sells memory subsystems primarily for the server, high-performance computing and communications markets.
| Issuer: | Netlist, Inc.
|
| Issue: | Senior secured convertible promissory note
|
| Amount: | $15 million
|
| Maturity: | Dec. 31, 2021
|
| Coupon: | 2%
|
| Conversion price: | $1.25
|
| Conversion premium: | 95.31%
|
| Call: | Yes
|
| Warrants: | For 2 million shares, only if redemption option is exercised
|
| Warrant expiration: | Dec. 31, 2025
|
| Warrant strike price: | $0.30
|
| Investor: | SVIC No. 28 New Technology Business Investment LLP
|
| Settlement date: | Nov. 18
|
| Stock symbol: | Nasdaq: NLST
|
| Stock price: | $0.64 at close Nov. 17
|
| Market capitalization: | $45.82 million
|
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