By Sheri Kasprzak
Atlanta, Jan. 13 - Ramp Corp. has received agreements for a $4 million private placement of convertibles.
The company will sell to DKR Soundshore Oasis Holding Fund Ltd., Harborview Master Fund LP and Platinum Partners Value Arbitrage Fund LP up to $4 million in convertible redeemable debentures.
The debentures are convertible into common stock at $2.40 each, pay interest 8% annually and mature in two years.
The investors will also receive warrants for up to 100% of the shares issuable upon conversion at $2.40 each.
So far, the company has received $2 million in investments. A second tranche is expected to close in the near future.
The company also expects to receive up to $25 million in an equity line of credit from the investors in the private placement. The company will sell shares at an 8% discount to the 10-day market price for every draw on the line.
Ramp, based in New York, develops and markets software for long-term care facilities and other healthcare providers.
| Issuer: | Ramp Corp.
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| Issue: | Convertible redeemable debentures
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| Amount: | $4 million
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| Maturity: | Two years
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| Coupon: | 8%
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| Price: | Par
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| Yield: | 8%
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| Conversion price: | $2.40
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| Warrants: | For up to 100% of the number of share issuable upon conversion
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| Warrant strike price: | $2.40
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| Investors: | DKR Soundshore Oasis Holding Fund Ltd., Harborview Master Fund LP and Platinum Partners Value Arbitrage Fund LP
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| Announcement date: | Jan. 13
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| Stock price: | $2.81 at close Jan. 13
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