By Sheri Kasprzak
New York, March 6 - Narrowstep Inc. concluded a $7.11 million private placement of mandatory convertible notes.
The two-year 12% notes automatically convert into common shares at a 10% discount to the securities issued in any subsequent financing of at least $3 million or, in the event of the sale of the company before that time, shares of common stock valued at a 10% discount to the price per share paid in the sale of the company.
The investors also received warrants for 3.555 million shares, exercisable at $0.60 each for five years.
Narrowstep may exercise the right to force the cash exercise of the warrants if the stock trades at or above $1.80 per share for at least 20 consecutive trading days.
New York-based Narrowstep provides television content over the internet.
Issuer: | Narrowstep Inc.
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Issue: | Mandatory convertible notes
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Amount: | $7.11 million
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Maturity: | Two years
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Coupon: | 12%
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Price: | Par
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Yield: | 12%
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Conversion price: | At a 10% discount to the securities issued in any subsequent financing of at least $3 million or at the price per share if the company is sold
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Warrants: | For 3.555 million shares
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Warrant expiration: | Five years
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Warrant strike price: | $0.60
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Settlement date: | March 6
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Stock symbol: | OTCBB: NRWS
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Stock price: | $0.86 at close March 5
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