By Sheri Kasprzak
New York, Jan. 22 - Raptor Networks Technology, Inc. came away from a private placement with $1.6 million.
The company sold 18-month senior secured convertible notes to Castlerigg Master Investments Ltd.
The 9.25% notes are convertible into common shares at $0.43948 each. The notes are due July 31, 2008.
The investors received series L-2 warrants for 7,281,332 shares and series M-2 warrants for 2,366,433 shares. Both series of warrants are exercisable at $0.43948 each for seven years.
Montgomery & Co., LLC was the placement agent.
Connected with the offering, the company restructured its existing $5 million convertible debentures issued in July 2006.
In the restructuring, the company increased the amount of the debentures to $7.2 million and extended the first principal payment date to the earlier of the first day of the month following the month the registration statement is declared effective and May 1, 2007. The original principal payment date was Nov. 30, 2006.
Also, the company agreed to issue 20,478,748 series L warrants, increased from 17,065,623 warrants. The strike price on both series M and L warrants issued in the original offering was reduced to $0.43948 from $0.5054 and the expiry extended to seven years from five years.
Based in Santa Ana, Calif., Raptor develops network-switching architectures used in services like video, voice-over-internet protocol, high-speed storage and others.
| Issuer: | Raptor Networks Technology, Inc.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $1.6 million
|
| Maturity: | July 31, 2008
|
| Coupon: | 9.25%
|
| Price: | Par
|
| Yield: | 9.25%
|
| Conversion price: | $0.43948
|
| Warrants: | Series L-2 warrants for 7,281,332 shares; series M-2 warrants for 2,366,433 shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.43948
|
| Investor: | Castlerigg Master Investments Ltd.
|
| Placement agent: | Montgomery & Co., LLC
|
| Settlement date: | Jan. 19
|
| Stock symbol: | OTCBB: RPTN
|
| Stock price: | $0.81 at close Jan. 19
|
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