Deal offers 16% one-year notes, convertible at $0.75 per common share
By Devika Patel
Knoxville, Tenn., July 1 - Aura Systems Inc. raised $325,000 in a final tranche of a $2.72 million private placement of 16% senior secured convertible notes on June 25, according to an 8-K filed Monday with the Securities and Exchange Commission. The company settled an initial $750,000 tranche on May 9, when it said it planned to raise $4 million.
The company issued $1.65 million of notes to certain investors in exchange for other company obligations.
The tenor of the notes is 12 months, and they are convertible into common shares at an initial conversion price of $0.50 per share. The conversion price is a 16.28% premium over the company's $0.43 closing share price on May 8.
The company may not prepay the notes.
The investors also received seven-year warrants for 3,627,600 shares. The exercise price is $0.75 per share.
Based in El Segundo, Calif., Aura Systems develops power-generation systems.
| Issuer: | Aura Systems Inc.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $2,720,700
|
| Maturity: | 12 months
|
| Coupon: | 16%
|
| Conversion price: | $0.50
|
| Warrants: | For 3,627,600 shares
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.75
|
| Settlement date: | May 9 (for $750,000), June 25 (for $325,000)
|
| Stock symbol: | OTCBB: AUSI
|
| Stock price: | $0.43 at close May 8
|
| Market capitalization: | $22.71 million
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