Deal sells three-year convertible notes along with five-year warrants
By Devika Patel
Knoxville, Tenn., Dec. 3 - Avantair, Inc. said it settled a private placement of senior secured convertible notes for $2.8 million.
The 2% notes, which mature in three years, are convertible into common stock at $0.25 per share.
The investors also will receive warrants, which are each exercisable at $0.50 for five years.
The strike price and conversion price reflect 233.33% and 66.67% premiums to the Nov. 30 closing share price of $0.15.
"We believe that this new round of financing will allow us to continue making progress on our flight operations and customer service initiatives," chief executive officer Steven Santo said in a press release. "Our board of directors and primary aircraft providers played a major role in our achieving today's results and providing additional support for our long term business model. Additionally, I am grateful for the continued strong support from our loyal owner group."
Avantair is a fractional aircraft operator based in Clearwater, Fla.
| Issuer: | Avantair, Inc.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $2.8 million
|
| Maturity: | Three years
|
| Coupon: | 2%
|
| Conversion price: | $0.25
|
| Warrants: | Yes
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.50
|
| Settlement date: | Dec. 3
|
| Stock symbol: | OTCBB: AAIR
|
| Stock price: | $0.15 at close Nov. 30
|
| Market capitalization: | $4.02 million
|
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