9% senior secured debentures sold with warrants for 12,026,667 shares
By Devika Patel
Knoxville, Tenn., June 10 – Authentidate Holding Corp. concluded a $900,000 tranche of a $3 million private placement of 9% senior secured convertible debentures on June 8, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The one-year debentures are initially convertible into 12 million common shares at $0.25 per share. They may be redeemed at 110.
Investors also will receive warrants for 12,026,667 shares, with warrants for 3,626,667 shares issued in the initial closing and warrants for 8.4 million shares to be issued in a second tranche. Each warrant is initially exercisable at $0.30.
The conversion price reflects a 19.05% premium to the June 5 closing share price of $0.21. The strike price is a 42.86% premium to that price.
Settlement of the second and final $2.1 million tranche is expected June 24.
Proceeds will be used for general corporate purposes.
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.
|
| Issue: | Senior secured convertible debentures
|
| Amount: | $3 million
|
| Maturity: | One year
|
| Coupon: | 9%
|
| Conversion price: | $0.25
|
| Conversion premium: | 19.05%
|
| Conversion ratio: | Into 12 million common shares
|
| Call: | At 110
|
| Warrants: | For 12,026,667 shares
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| Warrant strike price: | $0.30
|
| Settlement date: | June 8 (for $900,000), June 24 (for $2.1 million)
|
| Stock symbol: | OTCBB: ADAT
|
| Stock price: | $0.21 at close June 5
|
| Market capitalization: | $8.16 million
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