Company, purchasers amend deal to increase warrant coverage to 100%
By Angela McDaniels
Tacoma, Wash., March 14 – root9B Technologies, Inc. sold $5.58 million of common stock in the final tranche of a $7.7 million private placement on March 10.
Drexel Hamilton, LLC acted as placement agent for the final closing, according to an 8-K filing with the Securities and Exchange Commission.
The deal priced in November. The company previously settled $845,750 on Nov. 5, $1.02 million on Dec. 23 and $250,000 on Jan. 26.
On March 9, the company and the purchasers amended their purchase agreement to increase the warrant coverage to 100% from 25%.
In total, the company sold 7 million shares for $1.10 each, and the investors received 7 million five-year warrants with an exercise price of $1.10 per share.
The price per share is an 18.52% discount to the $1.35 closing share price on Nov. 4.
Warrant details
On Feb. 9, the company completed its offer to amend some of its outstanding warrants to purchase an aggregate of 4,358,724 shares.
Under the offer to amend and exercise, warrants to purchase an aggregate of 1,142,529 shares were tendered and exercised at an exercise price of $1.10.
Following the expiration of the offer, the company issued new unregistered warrants to the participating holders to purchase 285,654 shares of common stock with a term of five years with have an exercise price per share equal to $1.50.
The Charlotte, N.C., company offers cybersecurity, regulatory risk mitigation, and energy and controls services.
| Issuer: | root9B Technologies Inc.
|
| Issue: | Common stock
|
| Amount: | $7.7 million
|
| Shares: | 7 million
|
| Price: | $1.10
|
| Warrants: | One warrant per share
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.50
|
| Agent: | Drexel Hamilton, LLC (for final closing)
|
| Settlement dates: | Nov. 5 (for $845,750), Dec. 23 (for $1,019,700), Jan. 26 (for $250,000), March 10 (for $5,584,549.30)
|
| Stock symbol: | OTCBB: RTNB
|
| Stock price: | $1.35 at close Nov. 4
|
| Market capitalization: | $94.29 million
|
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