One-month, six-month notes sold with warrants for 899,500 shares
By Toni Weeks
San Luis Obispo, Calif., Feb. 23 – Authentidate Holding Corp. sold a $1 million promissory note on Feb. 17, according to an 8-K filed Monday with the Securities and Exchange Commission. It also sold a second, $950,000 short-term note on the same date.
The longer-term note is due in six months and bears interest at 8%.
The investor will receive warrants to purchase up to 800,000 shares.
An initial closing was held on Feb. 17, at which time Authentidate received $100,000 for $100,000 of notes and 80,000 warrants. The final closing is expected by Feb. 27.
Proceeds will be used to repay the principal amount of the short-term note and for general business and working capital purposes.
The company issued the short-term note on Feb. 17 in the principal amount of $950,000, along with warrants for 99,500 shares.
The one-month note bears interest at 0.48% per month and will be used for general business and working capital purposes.
For both deals, each warrant is exercisable for 54 months at $1.01 per share, a 36.49% premium to the closing share price of $0.74 on Feb. 13.
Berkeley Heights, N.J.-based Authentidate provides secured web-based software applications and telehealth products and services to health-care providers.
| Issuer: | Authentidate Holding Corp.
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| Issue: | Promissory notes
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| Amount: | $1.95 million
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| Warrants: | For 899,500 shares
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| Warrant expiration: | 54 months
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| Warrant strike price: | $1.01
|
| Announcement date: | Feb. 23
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| Pricing date: | Feb. 17
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| Settlement dates: | Feb. 17 (for $1.05 million); Feb. 27
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| Stock symbol: | Nasdaq: ADAT
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| Stock price: | $0.74 at close on Feb. 13
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| Market capitalization: | $33.49 million
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| Short-term note
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| Amount: | $950,000
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| Maturity: | One month
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| Coupon: | 5.76% (0.48% per month)
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|
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| Note
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| Amount: | $1 million
|
| Maturity: | Six months
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| Coupon: | 8%
|
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