By Sheri Kasprzak
New York, March 13 - Rim Semiconductor Co. said it completed a private placement of 7% convertible debentures for $6 million.
The two-year debentures were purchased by institutional and private investors and are convertible into shares at the lesser of 70% of the volume-weighted average price of the company's stock for the 20 trading days before conversion or the lowest purchase price or conversion price for any financing the company embarks upon following the completion of the debenture offering.
The investors received warrants for 70,955,548 shares, exercisable at $0.16 for three years.
Krieger & Prager, LLP was the placement agent.
Proceeds from the deal will be used for the commercialization of the company's Embarq product, a digital signal processor used in voiceover internet protocol technology.
Separately, Rim said it eliminated $845,000 of debt by issuing 12,064,494 shares to cancel six promissory notes.
Based in Portland, Ore., Rim Semiconductor develops semiconductor technologies used in communications products.
| Issuer: | Rim Semiconductor Co.
|
| Issue: | Convertible debentures
|
| Amount: | $6 million
|
| Maturity: | Two years
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion price: | The lesser of 70% of the VWAP for the 20 trading days before conversion or the lowest share or conversion price of any subsequent financing while the debentures are outstanding
|
| Warrants: | For 70,955,548 shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.16
|
| Placement agent: | Krieger & Prager, LLP
|
| Settlement date: | March 6
|
| Stock symbol: | OTCBB: RSMI
|
| Stock price: | $0.16 at close March 6
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