By Abigail W. Adams
Portland, Me., Oct. 19 – Akoustis Technologies, Inc. priced $10 million of five-year convertible notes prior to the market open on Friday at par with a coupon of 6.5% and an initial conversion premium of 20%, according to an FWP filing with the Securities and Exchange Commission.
Oppenheimer & Co. Inc. is the bookrunner for the registered offering.
The convertible notes priced concurrently with a $30.81 million, or 7.25 million share, offering of common stock, which priced at $4.25 a share.
The common stock offering carries a greenshoe of $4.62 million, or 1,087,500 shares.
The notes are putable on Nov. 30, 2021. They are also putable upon a fundamental change.
The notes are non-callable until Nov. 30, 2019. They may be redeemed at par subject to a 175% hurdle until Nov. 30, 2020.
They are redeemable subject to a 150% hurdle until Nov. 30, 2021 and subject to a 125% hurdle thereafter.
Net proceeds from the convertible notes offering is expected to be $8.9 million.
Net proceeds from the common stock offering is expected to be $28.5 million, or $32.9 million if the greenshoe is exercised in full.
Proceeds will be used for capital expenditures, research and development, the commercialization of its technology and general corporate purposes.
Akoustis Technologies is a Charlotte, N.C.-based manufacturer of RF filters for mobile and other wireless applications.
| Issuer: | Akoustis Technologies, Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $10 million
|
| Maturity: | Nov. 30, 2023
|
| Bookrunner: | Oppenheimer & Co. Inc.
|
| Coupon: | 6.5%
|
| Price: | Par
|
| Yield: | 6.5%
|
| Conversion premium: | 20%
|
| Conversion price: | $5.10
|
| Conversion rate: | 196.08
|
| Call options: | Non-callable until Nov. 30, 2019, subject to a 175% hurdle until Nov. 30, 2020, a 150% hurdle until Nov. 30, 2021 then subject to a 125% hurdle
|
| Put options: | Putable Nov. 30, 2021 and upon a fundamental change
|
| Concurrent offering: | $30.81 million or 1,087,500 shares of common stock
|
| Pricing date: | Oct. 19
|
| Settlement date: | Oct. 23
|
| Stock symbol: | Nasdaq: AKTS
|
| Stock price: | $4.25 in concurrent offering
|
| Market capitalization: | $93.18 million
|
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