Deal sells 18-month notes with warrants to fund expansion, development
By Devika Patel
Knoxville, Tenn., May 30 - MGT Capital Investments, Inc. gave further details about a $3.5 million private placement of senior secured convertible notes in an 8-K filed Wednesday with the Securities and Exchange Commission. The deal priced May 24.
The 8% notes, which mature in 18 months, are initially convertible into 1,166,666 common shares at $3.00 per share. The company may force conversion.
The investors also will receive warrants for 875,000 shares, which are each exercisable at $3.00 for five years.
The strike price and conversion price reflect a 36.17% discount to the May 23 closing share price of $4.70.
Proceeds will be used for general working capital.
"As CFO, as well as a large stockholder of MGT, I am very mindful of enhancing long-term shareholder value," chief financial officer Robert Traversa said in a press release on May 29. "This deal brings us a strategic investor with proven success in the intellectual property space and sets a strong foundation for our expansion and development."
MGT Capital is a health care holding company based in London.
| Issuer: | MGT Capital Investments, Inc.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $3.5 million
|
| Maturity: | 18 months
|
| Coupon: | 8%
|
| Conversion price: | $3.00
|
| Conversion ratio: | Into 1,166,666 shares
|
| Call: | Yes
|
| Warrants: | For 875,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $3.00
|
| Pricing date: | May 24
|
| Stock symbol: | NYSE Amex: MGT
|
| Stock price: | $4.70 at close May 23
|
| Market capitalization: | $10.35 million
|
© 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.
