By Sheri Kasprzak
Atlanta, March 3 - eLinear Inc. has released more details on its closed $12 million private placement of three-year convertible notes.
The company sold convertible secured notes to Laurus Master Fund Ltd., Iroquois Capital LP, RHP Master Fund, Basso Private Opportunity Holding Fund Ltd. and Basso Multi-Strategy Holding Fund Ltd.
The notes mature Feb. 28, 2008 and bear interest at Prime rate plus 75 basis points, with a 5.5% floor. The notes are convertible into common shares at $1.00 each. The conversion price resets with every $500,000 in conversions with a $1.00 floor.
The company has the ability to prepay the notes at 110% of the principal amount.
The investors also received warrants for 2 million shares at $1.00 each through Feb. 28, 2012.
So far, the company has received 20% of the proceeds and 80% of the proceeds have been placed in eLinear's restricted cash accounts available upon conversion.
Based in Houston, eLinear is a communications, security and compliance company providing integrated technology for IP telephony, network and storage infrastructure. The proceeds will be used for working capital and acquisitions.
| Issuer: | eLinear Inc.
|
| Issue: | Convertible secured notes
|
| Amount: | $12 million
|
| Maturity: | Feb. 28, 2008
|
| Coupon: | Prime rate plus 75 basis points, 5.5% floor
|
| Conversion price: | $1.00
|
| Call: | May prepay notes at 110% of principal amount
|
| Warrants: | For 2 million shares
|
| Warrant expiration: | Feb. 28, 2012
|
| Warrant strike price: | $1.00
|
| Investors: | Laurus Master Fund Ltd., Iroquois Capital LP, RHP Master Fund, Basso Private Opportunity Holding Fund Ltd. and Basso Multi-Strategy Holding Fund Ltd.
|
| Settlement date: | Feb. 28
|
| Stock price: | $0.90 at close Feb. 28
|
|
|
© 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.
