Investors also receive 85% warrant coverage; CEO among investors
By Angela McDaniels
Tacoma, Wash., May 16 – Inventergy Global, Inc. sold $369,000 of series D convertible preferred stock in a private placement on May 13, according to an 8-K filing with the Securities and Exchange Commission.
The conversion price is $1.98 per share of common stock, which is a 7% premium over the company’s closing share price on May 12.
If the company pays dividends on its common stock, holders of the convertibles will receive dividends on an as-if-converted-to-common-stock basis.
The convertibles are callable at 120 on or prior to Aug. 11 and at 135 after Aug. 11.
Each investor also received a warrant to purchase up to a number of shares of common stock equal to 85% of that investor’s subscription amount.
The warrants are exercisable for a term of five years beginning six months and one day after the closing of the placement at a cash exercise price of $1.87 per share, which is a 1.2% premium over the company’s May 12 closing share price.
Half of the warrants vested immediately, and the remainder of the warrants will vest only if an investor’s convertibles remain outstanding on the initial exercise date.
The company’s chief executive officer and each member of the board of directors participated in the financing. Together, they invested $144,000.
Inventergy Global is a communications technology company based in Campbell, Calif.
| Issuer: | Inventergy Global, Inc.
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| Issue: | Series D convertible preferred stock
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| Amount: | $369,000
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| Preferreds: | 369
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| Price: | $1,000
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| Dividends: | If the company pays dividends on its common stock, holders of the convertibles will receive dividends on an as-if-converted-to-common-stock basis.
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| Conversion price: | $1.98
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| Conversion premium: | 7%
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| Call option: | At 120 on or prior to Aug. 11 and at 135 after Aug. 11
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| Warrants: | For number of common shares equal to 85% of each investor’s subscription amount
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| Warrant expiration: | Five years
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| Warrant strike price: | $1.87
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| Settlement date: | May 13
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| Stock symbol: | Nasdaq: INVT
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| Stock price: | $1.85 at close May 12
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| Market capitalization: | $8.8 million
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