By Devika Patel
Knoxville, Tenn., Feb. 22 - Overland Storage, Inc. said it has arranged a private placement of convertible preferred stock for about $12 million. The deal is expected to settle on Monday.
The company will sell 794,659 preferreds, which are initially convertible into 4,521,648 common shares.
Investors also received warrants for 6,373,266 shares, which are exercisable at $2.583 per share until Feb. 22, 2015.
Proceeds will be used to fund product development, sales and marketing expansion and general working capital requirements.
Overland Storage, based in San Diego, is a provider of data protection appliances.
| Issuer: | Overland Storage, Inc.
|
| Issue: | Convertible preferred stock
|
| Amount: | $12 million (approximate)
|
| Shares: | 794,659
|
| Conversion ratio: | Into 4,521,648 common shares
|
| Warrants: | For 6,373,266 shares
|
| Warrant expiration: | Feb. 22, 2015
|
| Warrant strike price: | $2.583
|
| Pricing date: | Feb. 22
|
| Settlement date: | Feb. 22
|
| Stock symbol: | Nasdaq: OVRL
|
| Stock price: | $2.45 at close Feb. 19
|
| Market capitalization: | $11.6 million
|
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