By Laura Lutz
Des Moines, Jan. 2 - Numerex Corp. negotiated a $10 million private placement of a secured convertible note with Laurus Master Fund, Ltd.
The 9.5% note has a term of four years. It is convertible into common stock at $10.37 per share.
Both the principal and interest are payable in cash or shares.
If Numerex's shares trade above $11.40, or 110% of the fixed conversion price, for 12 consecutive trading days, the company may convert the note into shares in tranches no larger than $2.5 million.
Laurus also received warrants for 158,562 shares, exercisable at $10.13 each.
Proceeds will be used for strategic initiatives including joint ventures, co-marketing programs and acquisitions.
Based in Atlanta, Numerex provides software for wireless networking.
| Issuer: | Numerex Corp.
|
| Issue: | Secured convertible note
|
| Amount: | $10 million
|
| Maturity: | Four years
|
| Coupon: | 9.5%
|
| Price: | Par
|
| Yield: | 9.5%
|
| Conversion price: | $10.37
|
| Warrants: | For 158,562 shares
|
| Warrant strike price: | $10.13
|
| Investor: | Laurus Master Fund, Ltd.
|
| Pricing date: | Jan. 2
|
| Stock symbol: | Nasdaq: NMRX
|
| Stock price: | $9.42 at close Dec. 29
|
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