Deal sells three-year 2% convertibles along with five-year warrants
By Devika Patel
Knoxville, Tenn., March 26 - Avantair, Inc. raised $900,000 in the fourth tranche of a $10 million private placement of senior secured convertible notes on March 20, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal raised $2.8 million at pricing on Nov. 30, $637,500 on Feb. 1 and $1.35 million on Feb. 28.
The 2% notes, which mature in three years, are convertible into common stock at $0.25 per share.
The investors also will receive warrants for 40 million shares, which are each exercisable at $0.50 until Nov. 30, 2017.
The strike price and conversion price reflect 233.33% and 66.67% premiums to the Nov. 30 closing share price of $0.15.
In the first tranche, investors received warrants for 11.2 million shares. Investors received warrants for 2.55 million shares in the second tranche, warrants for 5.4 million shares in the third tranche and warrants for 3.6 million shares in the fourth tranche.
Avantair is a fractional aircraft operator based in Clearwater, Fla.
| Issuer: | Avantair, Inc.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $10 million
|
| Maturity: | Three years
|
| Coupon: | 2%
|
| Conversion price: | $0.25
|
| Warrants: | For 40 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.50
|
| Pricing date: | Nov. 30
|
| Settlement date: | Nov. 30 (for $2.8 million), Feb. 1 (for $637,500), Feb. 28 (for $1.35 million), March 20 (for $900,000)
|
| Stock symbol: | OTCBB: AAIR
|
| Stock price: | $0.15 at close Nov. 30
|
| Market capitalization: | $6.14 million
|
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