Three-year secured promissory notes sold with 50% warrant coverage
By Devika Patel
Knoxville, Tenn., Sept. 12 – root9B Technologies Inc. arranged a $10 million private placement of three-year 10% secured convertible promissory notes, according to an 8-K filed Monday with the Securities and Exchange Commission. The company sold $2,636,000 of notes on Sept. 9.
The notes are convertible at $0.80 per share, a 5.26% premium to the Sept. 8 closing share price of $0.76. The notes may be prepaid.
The notes are being sold with 50% warrant coverage, with warrants for 1,647,500 shares issued in the first tranche. The five-year warrants are each exercisable at $0.80, also a 5.26% premium to the Sept. 8 closing share price.
Additional closings may be conducted on a rolling basis until Dec. 31.
The Charlotte, N.C., company offers cybersecurity, regulatory risk mitigation and energy and controls services.
| Issuer: | root9B Technologies Inc.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $10 million
|
| Maturity: | Three years
|
| Coupon: | 10%
|
| Conversion price: | $0.80
|
| Conversion premium: | 5.26%
|
| Call option: | Yes
|
| Warrants: | 50% coverage, or warrants for 6.25 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.80
|
| Announcement date: | Sept. 12
|
| Settlement date: | Sept. 9 (for $2,636,000)
|
| Stock symbol: | OTCBB: RTNB
|
| Stock price: | $0.76 at close Sept. 8
|
| Market capitalization: | $67.5 million
|
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