By Sheri Kasprzak
Atlanta, Nov. 23 - SiVault Systems Inc. said Tuesday it has completed a $3 million private placement.
The company sold $3 million in promissory notes and class A warrants for 400,000 shares to institutional investors. The warrants allow for the purchase of an additional share at $3 each.
The promissory notes accrue interest at a floating rate, beginning six months after closing. The notes are convertible into common shares at $2.25 per share.
Assuming the principal of the notes is converted, SiVault will issue about 1,333,333 shares.
SiVault received an initial $1.5 million upon the close of the deal and will receive an additional $1.5 million within five days of the registration of the shares included in the underlying notes and warrants.
Pacific Summit Securities Inc. was placement agent in the transaction.
SiVault, based in San Jose, specializes in retrieving and storing signed documents and biometric signature-based authentication for online transactions.
| Issuer: | SiVault Systems Inc.
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| Issue: | Convertible promissory notes
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| Amount: | $3 million
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| Coupon: | Floating rate
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| Conversion price: | $2.25
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| Warrants: | For 400,000 shares
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| Warrant strike price: | $3
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| Placement agent: | Pacific Summit Securities Inc.
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| Settlement date: | Nov. 23
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| Stock price: | $2.50 at close Nov. 23
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