By Sheri Kasprzak
New York, Aug. 23 - Tut Systems, Inc. is gearing up to wrap a $7 million private placement of 8% convertible notes.
The notes are due August 2009 and are convertible into a total of 5,631,536 shares at $1.24 each.
The investors also received warrants for 2,815,768 shares, exercisable at $1.36 each through August 2011. The warrants become exercisable in February 2007.
The deal is scheduled to close Thursday.
Proceeds will be used for working capital.
Tut Systems, based in Lake Oswego, Ore., develops content processing and distribution products, as well as system integration services for data and video services over broadband networks.
| Issuer: | Tut Systems, Inc.
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| Issue: | Convertible notes
|
| Amount: | $7 million
|
| Maturity: | August 2009
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $1.24
|
| Conversion ratio: | Into 5,631,536 shares
|
| Warrants: | For 2,815,768 shares
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| Warrant expiration: | August 2011
|
| Warrant strike price: | $1.36
|
| Announcement date: | Aug. 23
|
| Settlement date: | Aug. 24
|
| Stock symbol: | Nasdaq: TUTS
|
| Stock price: | $1.34 at close Aug. 22
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