Investors get warrants for 749,499 common shares, exercisable at $1.13
By Devika Patel
Knoxville, Tenn., Feb. 1 – Strata Skin Sciences, Inc. settled the $1.5 million second and final tranche of its $12 million credit facility agreement with a group of investors led by MidCap Financial Trust on Jan. 29, according to an 8-K filed Monday with the Securities and Exchange Commission. The deal raised $10.5 million on Dec. 30.
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 five-year warrants for 650,442 common shares with the first tranche and warrants for 99,057 shares with the second tranche. Each first-tranche warrant is exercisable at $1.13, which is a 1.8% premium to the Dec. 29 closing share price of $1.11. The second-tranche warrants are exercisable at $1.06, which is a 4.51% discount to the Dec. 29 closing share price and also equals the preceding 10-day volume-weighted average price at settlement, the company noted in the filing.
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 749,499 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.13 for 650,442 shares, $1.06 for 99,057 shares
|
| Investor: | MidCap Financial Trust (lead)
|
| Pricing date: | Dec. 30
|
| Settlement date: | Dec. 30 (for $10.5 million), Jan. 29 (for $1.5 million)
|
| Stock symbol: | Nasdaq: SSKN
|
| Stock price: | $1.11 at close Dec. 29
|
| Market capitalization: | $11 million
|
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