Rackwise concludes $3.38 million offering of 12% convertible notes

Notes sold with warrants exercisable for 13,646,807 shares at $0.32

By Devika Patel

Knoxville, Tenn., Nov. 17 - Rackwise, Inc. settled a $3.38 million private placement of 12% convertible promissory notes between August 2009 and February 2011, according to an 8-K filed Thursday with the Securities and Exchange Commission.

The notes were sold with warrants for 13,646,807 shares. The warrants are exercisable at $0.32, a 42.86% discount to the Nov. 16 closing share price of $0.56.

San Francisco-based Rackwise produces software.

Issuer:	Rackwise, Inc.
Issue:	Convertible promissory notes
Amount:	$3,375,753
Coupon:	12%
Warrants:	For 13,646,807 shares
Warrant strike price:	$0.32
Settlement date:	February
Stock symbol:	OTCBB: RACK
Stock price:	$0.56 at close Nov. 16
Market capitalization:	$45.4 million

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