Offering sells four-year notes, convertible at $0.75 per common share
By Devika Patel
Knoxville, Tenn., Aug. 26 - Aura Systems Inc. said it completed a $2 million private placement of 9.5% convertible notes. The company also issued $500,000 of the convertibles for the extension and conversion of a demand note.
The notes mature in four years, and they are convertible into common shares at $0.50 per share. The conversion price is a 51.52% premium over the company's $0.33 closing share price on Aug. 23.
The investors also received 100% warrant coverage. The warrants are exercisable at $0.75 for seven years. The strike price is a 127.27% premium to the Aug. 23 closing share price.
Based in El Segundo, Calif., Aura Systems develops power-generation systems.
| Issuer: | Aura Systems Inc.
|
| Issue: | Convertible notes
|
| Amount: | $2 million
|
| Maturity: | Four years
|
| Coupon: | 9.5%
|
| Conversion premium: | 51.52%
|
| Conversion price: | $0.50
|
| Warrants: | 100% coverage
|
| Warrant expiration: | Seven years
|
| Warrant strike price: | $0.75
|
| Settlement date: | Aug. 26
|
| Stock symbol: | OTCBB: AUSI
|
| Stock price: | $0.33 at close Aug. 23
|
| Market capitalization: | $25.23 million
|
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