Company sells two-year junior secured convertible notes with warrants
By Devika Patel
Knoxville, Tenn., July 6 - Digitiliti, Inc. settled a $500,000 tranche of a $1.5 million private placement of junior secured convertible promissory notes on June 29, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The 8% two-year notes will convert to common shares at $0.06 per share.
In addition, the investors received 10% warrant coverage. Each two-year warrant is exercisable at $0.06. In the first tranche, investors received warrants for 833,334 shares.
The conversion price and warrant strike price are a 14.29% discount to the June 28 closing share price of $0.07.
Based in St. Paul, Minn., Digitiliti provides data protection services to small- to medium-sized businesses and markets.
| Issuer: | Digitiliti, Inc.
|
| Issue: | Junior secured convertible promissory notes
|
| Amount: | $1.5 million
|
| Maturity: | Two years
|
| Coupon: | 8%
|
| Conversion price: | $0.06
|
| Warrants: | 10% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.06
|
| Settlement date: | June 29 (for $500,000)
|
| Stock symbol: | Pink Sheets: DIGI
|
| Stock price: | $0.09 at close June 29
|
| Market capitalization: | $5.67 million
|
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