Proceeds of brokered deal are earmarked for general corporate purposes
By Devika Patel
Knoxville, Tenn., Feb. 13 - Overland Storage, Inc. will conduct a $1 million registered direct offering of stock through agent Roth Capital Partners, LLC, according to a prospectus supplement filed Wednesday with the Securities and Exchange Commission. The company also said in a press release that it has settled a private placement of $13.25 million convertible promissory notes.
The company will sell 1,020,409 common shares at $0.98 apiece. The price per share is identical to the Feb. 12 closing share price.
The 8% notes have a four-year term. The notes are convertible into common shares at an initial conversion price of $1.30 per share, which is a 32.65% premium to the Feb. 12 closing price.
The shares are expected to settle on Feb. 19.
Proceeds will be used for general corporate purposes, which may include working capital needs and capital expenditures.
Overland Storage, based in San Diego, is a provider of data management and data protection solutions.
| Issuer: | Overland Storage, Inc.
|
| Issue: | Common stock, convertible promissory notes
|
| Amount: | $14.25 million
|
| Warrants: | No
|
| Announcement date: | Feb. 13
|
| Stock symbol: | Nasdaq: OVRL
|
| Stock price: | $0.98 at close Feb. 12
|
| Market capitalization: | $28.29 million
|
|
|
| Shares
|
| Amount: | $1 million
|
| Shares: | 1,020,409
|
| Price: | $0.98
|
| Agent: | Roth Capital Partners, LLC
|
| Settlement date: | Feb. 19
|
|
|
| Notes
|
| Amount: | $13.25 million
|
| Maturity: | Four years
|
| Coupon: | 8%
|
| Conversion price: | $1.30
|
| Settlement date: | Feb. 13
|
© 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.
