By Devika Patel
Knoxville, Tenn., Dec. 17 - Argyle Security, Inc. took in $10.45 million from a private placement of $8 million of convertible bridge notes and $2.45 million of convertible subordinated promissory notes on Dec. 14, according to an 8-K filed Thursday with the Securities and Exchange Commission.
Mezzanine Management Fund IV A, LP and Mezzanine Management Fund IV Coinvest A, LP are the investors.
Both series of notes carry a 10% coupon. The company agreed to conduct a rights offering. If it does, the notes are convertible into common stock at a price per share equal to the share price of the offering. If it fails to arrange a rights offering, the notes will convert at $0.4302.
Proceeds will be used for debt repayment, working capital and general corporate expenses.
San Antonio-based Argyle is involved in the physical electronic security industry.
| Issuer: | Argyle Security, Inc.
|
| Issue: | Convertible bridge notes, convertible subordinated promissory notes
|
| Amount: | $10.45 million
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $0.4302
|
| Warrants: | No
|
| Investors: | Mezzanine Management Fund IV A, LP and Mezzanine Management Fund IV Coinvest A, LP
|
| Settlement date: | Dec. 14
|
| Stock symbol: | OTCBB: ARGL
|
| Stock price: | $0.35 at close Dec. 14
|
| Market capitalization: | $2.82 million
|
|
|
| Bridge notes
|
| Amount: | $8 million
|
|
|
| Promissory notes
|
| Amount: | $2.45 million
|
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