18-month senior secured notes sold with 5% original issue discount
By Devika Patel
Knoxville, Tenn., Sept. 27 - Aura Systems Inc. sold $3.68 million of senior secured convertible notes for $3.5 million in a private placement on Sept. 26, according to an 8-K filed Tuesday with the Securities and Exchange Commission. MDB Capital, LLC was the agent.
The 5% original issue discount note matures in 18 months and is convertible into common shares at an initial conversion price of $0.75 per share. The conversion price is a 17.58% discount to the Sept. 23 closing share price of $0.91.
The investors also received a five-year warrant for 4.9 million shares, which is exercisable at $1.00, a 9.89% premium to the Sept. 23 closing share price.
Based in El Segundo, Calif., Aura Systems develops power-generation systems.
| Issuer: | Aura Systems Inc.
|
| Issue: | Senior secured convertible note
|
| Amount: | $3,675,000
|
| Maturity: | 18 months
|
| Price: | $3.5 million (5% original issue discount)
|
| Conversion price: | $0.75
|
| Warrants: | For 4.9 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.00
|
| Agent: | MDB Capital, LLC
|
| Pricing date: | Sept. 26
|
| Stock symbol: | OTCBB: AUSI
|
| Stock price: | $0.92 at close Sept. 26
|
| Market capitalization: | $57.51 million
|
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