By Abigail W. Adams
Portland, Me., May 10 – Akoustis Technologies Inc. priced $15 million in five-year convertible notes prior to the market open on Thursday with a coupon of 6.5% and an initial conversion premium of 10.5%, according to a company news release.
Oppenheimer & Co. Inc. and Drexel Hamilton were the underwriters for the Rule 144A deal.
The notes are callable on or after May 31, 2019 subject to a 175% hurdle. The notes are puttable on May 31, 2021.
If the holder converts the notes in the time period between the one-year anniversary of issuance and the put date there will be a make-whole payment.
Holders who convert the notes upon a fundamental change will be entitled to a fundamental change payment equal to $130 per $1,000 principal amount, according to the news release.
Proceeds are expected to be $13.5 million and will be used to fund research and development and the commercialization of the company’s technology.
Akoustis Technologies is a Charlotte, N.C.-based manufacturer of RF filters for mobile and other wireless applications.
| Issuer: | Akoustis Technologies Inc.
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| Securities: | Convertible senior secured notes
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| Amount: | $15 million
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| Maturity: | 2023
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| Bookrunners: | Oppenheimer & Co. Inc. and Drexel Hamilton
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| Coupon: | 6.5%
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| Price: | Par
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| Conversion premium: | 10.5%
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| Conversion price: | $6.55
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| Call options: | Callable after May 31, 2019 subject to a 175% hurdle
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| Put options: | May 31, 2021
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| Pricing date: | May 10
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| Settlement date: | May 14
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| Stock symbol: | Nasdaq: AKTS
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| Stock price: | $5.93 at market close May 9
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| Market capitalization: | $126 million
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