By Abigail W. Adams
Portland, Me., Feb. 15 – Inpixon priced $18 million of series 3 convertible preferred stock and class A units in an offering before the market open on Thursday.
The class A units are composed of one share of common stock and one warrant to purchase one share of common stock and the preferreds are part of class B units composed of one share of series 3 convertible preferred stock and one warrant.
The class A units were priced at $2.35 per unit and the class B units were priced at par of $1,000.
The shares of series 3 convertible preferred stock are each convertible into 426 shares of common stock and the warrants in the class B units are exercisable for 426 shares of common stock, according to a company release.
There is no dividend for the preferred stock, but holders will be entitled to the same dividends paid on common stock, according to the preliminary prospectus.
The conversion price for the preferred stock is $2.35, representing an initial conversion premium that is a 35% discount from Inpixon’s closing price on Feb. 14.
The warrants in the class A and class B units have a strike price of $3.50 and expire in five years.
The conversion price for the preferreds and the strike price for the warrants represents an initial conversion premium of 49%.
The strike price is subject to adjustment, according to a company release.
Roth Capital Partners is acting as sole placement agent for the offering and Maxim Group LLC is acting as financial adviser.
Gross proceeds are expected to be $18 million. Proceeds will be used for working capital, general corporate purposes, and to support the divesture of Inpixon’s infrastructure business segment.
Inpixon is a Palo Alto, Calif.-based indoor positioning and data analytics company.
| Issuer: | Inpixon
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| Issue: | Class B units composed of one share of series B convertible preferred stock and one warrant
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| Amount: | $18 million for class B units and concurrent sale of class A units of stock and warrants
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| Maturity: | Perpetual
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| Bookrunner: | Roth Capital Partners
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| Dividend: | Passthrough of stock dividends
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| Price: | Par of $1,000
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| Conversion price: | $2.35
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| Conversion rate: | 426
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| Warrant | One class B warrant for 426 shares per unit
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| Warrant strike price | $3.50
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| Warrant expiration | 5 years
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| Pricing date: | Feb. 15
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| Settlement date: | Feb. 20
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| Distribution: | Registered
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| Concurrent offering: | Class A units composed of one share of common stock and one warrant for one share of commons stock at $2.35
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| Stock symbol: | Nasdaq: INPX
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| Stock price: | $3.17 at close on Feb. 14
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| Market capitalization: | $3.87 million
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