Investors get warrants for 650,442 common shares, exercisable at $1.13
By Devika Patel
Knoxville, Tenn., Jan. 5 – Strata Skin Sciences, Inc. settled a $12 million credit facility agreement with a group of investors led by MidCap Financial Trust on Dec. 30, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The credit facility may be drawn down in two tranches. The first $10.5 million tranche settled at pricing and the second tranche will settle for $1.5 million.
The loan matures on Dec. 30, 2020 and bears interest at a rate equal to Libor plus 825 basis points.
As part of the transaction, the investors received warrants for 650,442 common shares with the first tranche and will receive 7% warrant coverage with the second tranche. Each warrant is exercisable at $1.13 for five years. The strike price is a 1.8% premium to the Dec. 29 closing share price of $1.11.
Proceeds of the first tranche were used to repay $10 million of short-term senior secured promissory notes.
The medical technology company is based in Horsham, Pa.
| Issuer: | Strata Skin Sciences, Inc.
|
| Issue: | Credit facility
|
| Amount: | $12 million
|
| Maturity: | Dec. 30, 2020
|
| Coupon: | Libor plus 825 bps
|
| Warrants: | For 650,442 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.13
|
| Investor: | MidCap Financial Trust (lead)
|
| Pricing date: | Dec. 30
|
| Settlement date: | Dec. 30 (for $10.5 million)
|
| Stock symbol: | Nasdaq: MELA
|
| Stock price: | $1.11 at close Dec. 29
|
| Market capitalization: | $11.4 million
|
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