Notes secured by first-priority lien on company’s assets
By Angela McDaniels
Tacoma, Wash., Oct. 22 – AllDigital Holdings, Inc. sold $550,000 of 5% senior secured convertible notes on Oct. 16 to two investors in a private placement.
The convertibles mature due Dec. 31, 2016 and are convertible into an aggregate of up to 3,666,667 shares of the company’s common stock, according to an 8-K filing with the Securities and Exchange Commission.
The conversion price is $0.15 per share, which is a 36.4% premium to the company’s $0.11 closing share price on Oct. 15.
The notes are secured by a first-priority lien on all of the company’s tangible and intangible assets. Stephen Smith is the collateral agent.
Proceeds will be used for general corporate purposes.
The Irvine, Calif., company provides software tools and back-end services for providers of digital services.
| Issuer: | AllDigital Holdings, Inc.
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| Issue: | Senior secured convertible notes
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| Amount: | $550,000
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| Maturity: | Dec. 31, 2016
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| Coupon: | 5%, payable quarterly
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| Conversion price: | $0.15
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| Conversion premium; | 36.4%
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| Warrants: | No
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| Settlement date: | Oct. 16
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| Stock symbol: | OTCBB: ADGL
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| Stock price: | $0.10 at close Oct. 22
|
| Market capitalization: | $3.64 million
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