Financing sells 7 million common shares along with five-year warrants
By Devika Patel
Knoxville, Tenn., Dec. 30 – root9B Technologies, Inc. settled a $1.02 million second tranche of a $7.7 million private placement of stock on Dec. 23, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal raised $845,750 on Nov. 5.
The company is selling 7 million common shares at $1.10 per share. The price per share is an 18.52% discount to the $1.35 closing share price on Nov. 4. In the initial tranche, root9B sold 768,864 shares. It sold 927,000 shares in the second tranche.
The investors also will receive 25% warrant coverage, or warrants for 1.75 million shares. Each warrant is exercisable at $1.50 for five years. The strike price is an 11.11% premium to the Nov. 4 closing share price. Investors received warrants for 192,216 shares in the first tranche, with warrants for 231,750 shares issued in the second tranche.
Settlement of the final tranche is Dec. 31.
The Charlotte, N.C., company offers cybersecurity, regulatory risk mitigation, and energy and controls services.
| Issuer: | root9B Technologies Inc.
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| Issue: | Common stock
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| Amount: | $7.7 million
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| Shares: | 7 million
|
| Price: | $1.10
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| Warrants: | For 1.75 million shares
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| Warrant expiration: | Five years
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| Warrant strike price: | $1.50
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| Settlement dates: | Nov. 5 (for $845,750), Dec. 23 (for $1,019,700), Dec. 31
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| Stock symbol: | OTCBB: RTNB
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| Stock price: | $1.35 at close Nov. 4
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| Market capitalization: | $101.36 million
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