By Sheri Kasprzak
New York, Dec. 20 - Jagged Peak, Inc. revealed the terms on its previously announced $2 million private placement of secured convertible notes.
Laurus Master Fund, Ltd. bought the notes, which have a three-year term, bear interest at Prime rate plus 200 basis points with a 10% floor and are convertible into common shares at $1.00 each.
Laurus also funded a $1 million revolving credit line for the company. The credit line also has a three-year term and bears interest at Prime rate plus 200 bps with a 10% floor.
Proceeds from the note will be used to extinguish $750,000 in outstanding debt and to provide additional working capital for the development of the company's sales and marketing department. Proceeds from the revolver will be used for cash flow.
Based in Clearwater, Fla., Jagged Peak develops web-based software to automate inventory fulfillment and order management.
| Issuer: | Jagged Peak, Inc.
|
| Issue: | Secured convertible notes
|
| Amount: | $2 million
|
| Maturity: | Three years
|
| Coupon: | Prime rate plus 200 bps, 10% floor
|
| Conversion price: | $1.00
|
| Warrants: | No
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| Investor: | Laurus Master Fund, Ltd.
|
| Settlement date: | Dec. 19
|
| Stock symbol: | OTCBB: JGPK
|
| Stock price: | $1.01 at close Dec. 19
|
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