BitNile, subsidiaries borrow $18.9 million 18-month term loans

By Marisa Wong

Los Angeles, Nov. 9 – BitNile Holdings, Inc. announced that it and some of its subsidiaries have borrowed $18.9 million of term loans from a group of institutional investors, according to a Tuesday press release.

The loans mature in 18 months but may be extended to 24 months and accrue interest at 8.5% per annum.

Starting in January 2023, the lenders have the right to require the company to make monthly payments of $600,000, which will increase to $1.1 million in November 2023.

The loans were issued with an original issue discount of $1.89 million.

The loans are secured by some assets of the company and various subsidiaries.

The loans are guaranteed by Ault Lending, LLC, a subsidiary of the company, Ault & Co., Inc., an affiliate of the company, as well as Milton C. Ault, III, the company’s executive chairman and the chief executive officer of Ault & Co., Inc.

The lenders received warrants to purchase about 4.5 million shares of the company’s common stock, exercisable for four years at $0.45 per share, and warrants to purchase another roughly 4.5 million shares of the company’s common stock, exercisable for four years at $0.75 per share, subject to adjustment.

Proceeds from the financing will be used for the purchase of a private aircraft, to be used for business and charter services and for general working capital purposes.

BitNile is a diversified holding company with headquarters in Las Vegas.

© 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.