Company offers five-year cashless warrants in lieu of interest
By Marisa Wong
Morgantown, W.Va., Feb. 4 – Cachet Financial Solutions, Inc. issued two 30-day notes totaling $150,000 each to a private investor and director on Jan. 29 and Feb. 1, according to an 8-K filing with the Securities and Exchange Commission.
In lieu of interest, the company agreed to issue five-year cashless warrants to purchase 250,000 shares of common stock at $0.329 per share to each of the private investor and director. The strike price is an 11.08% discount to the Jan. 28 closing share price.
If the note is repaid within two weeks of issuance, the investors will each return 125,000 shares of the warrants issued.
If the company fails to repay the note on the due date and for every 30 days beyond the due date that the note is outstanding, the company will provide additional five-year cashless warrants to purchase 250,000 shares of common stock at $0.329 per share at the end of each 30 day period.
Minneapolis-based Cachet is a cloud-based software-as-a-service provider of remote deposit capture and mobile wallet solutions.
| Issuer: | Cachet Financial Solutions, Inc.
|
| Issue: | Notes, warrants
|
| Amount: | $300,000 (two $150,000 notes)
|
| Maturity: | 30 days
|
| Warrants: | Cashless warrant to purchase 250,000 common shares per note
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.329
|
| Investors: | Private investor, director
|
| Settlement dates: | Jan. 29, Feb. 1
|
| Stock symbol: | OTCBB: CAFN
|
| Stock price: | $0.37 at close Jan. 28
|
| Market capitalization: | $6.79 million
|
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