Senior promissory note will convert to units of one share, one warrant
By Devika Patel
Knoxville, Tenn., April 26 - Rackwise, Inc. concluded a $400,000 private placement of 12% senior convertible promissory notes on April 20, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The notes mature in 90 days and are convertible into units at $0.45 per unit. Each unit consists of one common share and one warrant, with each warrant exercisable at $1.00 for five years.
The conversion price reflects a 39.19% discount to the April 19 closing share price of $0.74. The warrant strike price is a 35.14% premium to that price.
San Francisco-based Rackwise produces software.
| Issuer: | Rackwise, Inc.
|
| Issue: | Senior convertible promissory notes
|
| Amount: | $400,000
|
| Maturity: | 90 days
|
| Coupon: | 12%
|
| Conversion price: | $0.45
|
| Warrants: | One warrant per unit upon conversion
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.00
|
| Settlement date: | April 20
|
| Stock symbol: | OTCBB: RACK
|
| Stock price: | $0.74 at close April 19
|
| Market capitalization: | $102.19 million
|
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