Series E convertible preferreds being sold with 85% warrant coverage
By Devika Patel
Knoxville, Tenn., July 22 – Inventergy Global, Inc. will raise $3 million in a private placement of 5% series E convertible preferred stock, according to an 8-K filed Friday with the Securities and Exchange Commission. Chardan Capital Markets is the agent for the deal, which priced on July 21.
The 3,000 preferreds will be sold at $1,000 apiece and are initially convertible into 1,496,262 common shares at $2.005 per share. The company may redeem the preferreds at premiums ranging from 26% to 50%.
The investors also will receive 85% warrant coverage, or warrants for 1,271,826 shares. The warrants are each exercisable at $2.005 for five years.
The strike price and conversion price are a 41.2% premium to the $1.42 closing share price on July 20.
Settlement is expected July 25.
Proceeds will be used to redeem about 70% of the company’s series C convertible preferred stock and for working capital.
The communications technology company is based in Campbell, Calif.
| Issuer: | Inventergy Global, Inc.
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| Issue: | Series E convertible preferred stock
|
| Amount: | $3 million
|
| Preferreds: | 3,000
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| Price: | $1,000
|
| Dividends: | 5%
|
| Conversion price: | $2.005
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| Conversion ratio: | Into 1,496,262 common shares
|
| Call: | At premiums ranging from 26% to 50%
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| Warrants: | 85% coverage, for 1,271,826 shares
|
| Warrant expiration: | Five years
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| Warrant strike price: | $2.005
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| Agent: | Chardan Capital Markets
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| Pricing date: | July 21
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| Settlement date: | July 25
|
| Stock symbol: | Nasdaq: INVT
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| Stock price: | $1.42 at close July 20
|
| Market capitalization: | $6.67 million
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