Investors also receive 54-month warrants for 2 million common shares
By Devika Patel
Knoxville, Tenn., Nov. 3 – Authentidate Holding Corp. settled a $450,000 second tranche of a $1 million private placement of 20% promissory notes on Oct. 28, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal raised $400,000 at pricing on Sept. 18.
Each note is due in one year.
Investors also will receive warrants for 2 million common shares, which expire in 54 months, with warrants for 800,000 shares issued in the initial tranche and warrants for 1 million shares issued in the second tranche. Each of the warrants is exercisable at $0.30, which is a 3.23% discount to $0.31, the Sept. 17 closing price.
Peachstate Medical Holdings LLC invested $450,000 in the second tranche and received 1 million warrants.
Proceeds will be used for general business and working capital purposes.
Based in Berkley Heights, N.J., Authentidate is a provider of secure workflow management software and web-based services.
| Issuer: | Authentidate Holding Corp.
|
| Issue: | Promissory notes
|
| Amount: | $1 million
|
| Maturity: | One year
|
| Coupon: | 20%
|
| Warrants: | For 2 million shares
|
| Warrant expiration: | 54 months
|
| Warrant strike price: | $0.30
|
| Investor: | Peachstate Medical Holdings LLC (for $450,000)
|
| Pricing date: | Sept. 18
|
| Settlement dates: | Sept. 18 (for $400,000), Oct. 28 (for $450,000)
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| Stock symbol: | Nasdaq: ADAT
|
| Stock price: | $0.31 at close Sept. 17
|
| Market capitalization: | $18.65 million
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