Deal includes 2,558,139 warrants exercisable at $1.34 for 54 months
By Devika Patel
Knoxville, Tenn., Sept. 28 - Authentidate Holding Corp. settled a $3.3 million private placement of 0% senior secured promissory notes on Sept. 28, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal priced on Sept. 24.
Each note is due on Oct. 31, 2013.
Investors also received warrants for 2,558,139 common shares, which expire in 54 months. Each of the warrants is exercisable at $1.34, which is a 5.51% premium to $1.27, the Sept. 21 closing price.
Proceeds "will be used primarily for general business and working capital purposes as well as to support the growth of our telehealth solution for remote patient monitoring," chief executive officer Ben Benjamin said in a press release. "We are optimistic about the opportunity we have to increase our revenues in the coming quarters, and these additional funds will assist us in growing sales and responding efficiently to new product orders."
Based in Berkley Heights, N.J., Authentidate is a provider of secure workflow management software and web-based services.
| Issuer: | Authentidate Holding Corp.
|
| Issue: | Senior secured promissory notes
|
| Amount: | $3.3 million
|
| Maturity: | Oct. 31, 2013
|
| Coupon: | 0%
|
| Warrants: | For 2,558,139 shares
|
| Warrant expiration: | 54 months
|
| Warrant strike price: | $1.34
|
| Pricing date: | Sept. 24
|
| Settlement date: | Sept. 28
|
| Stock symbol: | Nasdaq: ADAT
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| Stock price: | $1.27 at close Sept. 21
|
| Market capitalization: | $35.7 million
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