Breakaway Capital Management is agent for 14% five-year debt offering
By Devika Patel
Knoxville, Tenn., Aug. 29 – Galaxy Gaming, Inc. arranged a $10.5 million 14% loan agreement on Aug. 29, according to an 8-K filed Monday with the Securities and Exchange Commission. Breakaway Capital Management, LLC is the agent.
The loan matures in five years and may be prepaid at prices ranging from 101 to 104.
The investors also will receive warrants for 1,965,780 shares, which are exercisable at $0.30 for six years. The strike price reflects a 33.33% discount to the Aug. 26 closing share price of $0.45.
Proceeds were used primarily to prepay long-term debt owed to Prime Table Games, LLC and Prime Table Games, UK and will also be used for general corporate purposes and working capital needs.
The Las Vegas company designs, manufactures and sells casino table games and associated technology, platforms and systems for the global gaming industry.
| Issuer: | Galaxy Gaming, Inc.
|
| Issue: | Loan
|
| Amount: | $10.5 million
|
| Maturity: | Five years
|
| Coupon: | 14%
|
| Call: | At 101 to 104
|
| Warrants: | For 1,965,780 shares
|
| Warrant expiration: | Six years
|
| Warrant strike price: | $0.30
|
| Agent: | Breakaway Capital Management, LLC
|
| Pricing date: | Aug. 29
|
| Stock symbol: | OTCBB: GLXZ
|
| Stock price: | $0.45 at close Aug. 26
|
| Market capitalization: | $18.09 million
|
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