By Marisa Wong
Los Angeles, Aug. 11 – BitNile, Inc., a wholly owned subsidiary of BitNile Holdings, Inc., entered into a note purchase agreement on Aug. 10 with two sophisticated investors for the issuance of secured promissory notes totaling $11 million, according to an 8-K filing with the Securities and Exchange Commission.
The purchase price for the notes was $10 million.
The notes bear interest at 10% per annum and mature on Aug. 10, 2023.
BitNile is required to make an aggregate monthly payment of $1 million, starting in September 2022.
After BitNile makes the first six monthly payments, BitNile may elect to pay a forbearance fee of $125,000 to an investor, or an aggregate of $250,000 to the two investors in lieu of a monthly payment; this monthly forbearance would extend the maturity date of the notes by one month, provided that BitNile may not elect to make a monthly forbearance in consecutive months.
BitNile may prepay the full outstanding principal and accrued interest at any time, provided that if BitNile prepays the notes, it is required to pay the investors the amount of interest that would have accrued from the date of prepayment until the first anniversary of the issuance date.
Under the note purchase agreement, BitNile and subsidiary Digital Power Lending, LLC and Helios Funds LLC as collateral agent on behalf of the investors entered into a security agreement, under which DP Lending granted to the investors a security interest in marketable securities, investments and other property having a value of $10 million in a Digital Power Lending brokerage account and BitNile granted to the investors a security interest in 4,000 S19 Pro Antminers, provided that the number of miners would be reduced to 2,000 after BitNile makes the third monthly payment under the notes.
In addition, under a subsidiary guaranty, Digital Power Lending jointly and severally agreed to guarantee and act as surety for BitNile’s obligation to repay the notes.
BitNile is a diversified holding company based in Las Vegas that acquires undervalued businesses and disruptive technologies and owns and operates a Bitcoin mining data center, provides products that support industries such as defense and automotive and extends credit to select businesses through a licensed lending subsidiary.
| Issuer: | BitNile, Inc.
|
| Amount: | $11 million
|
| Issue: | Secured promissory notes
|
| Maturity: | Aug. 10, 2023
|
| Coupon: | 10%
|
| Price: | $10 million
|
| Pricing date: | Aug. 10
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
