Akoustis to redeem $10 million 6.5% convertibles due 2023

By Taylor Fox

New York, Dec. 7 – Akoustis Technologies, Inc. plans to redeem its outstanding $10 million 6.5% convertible senior notes due 2023 on Feb. 1, according to a news release.

The notes will be redeemed at par plus interest as well as an interest make-whole payment.

The price will include $10.833 of interest per $1,000 of notes and $184.167 as the interest make-whole payment per $1,000 of notes redeemed.

The make-whole payment may be paid in cash or freely tradeable shares of Akustis common stock so long as the volume weighted average price of the common stock for the 10 trading days ending on and including Jan. 29, multiplied by 0.95, is not less than $5.01 per share.

Holders of the notes may elect to convert the notes into shares of common stock at a conversion rate equal to 196.08 shares of common stock per $1,000 principal amount of notes, equivalent to a conversion price of approximately $5.10 per share.

This conversion right will terminate at the close of business on Jan. 29.

Akoustis Technologies is a Charlotte, N.C.-based manufacturer of RF filters for mobile and other wireless applications.

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