Company sells convertible promissory notes due Dec. 31, 2016 in deal
By Devika Patel
Knoxville, Tenn., Jan. 20 – Transgenomic, Inc. arranged to sell up to $2.25 million of unsecured convertible promissory notes through a private placement on Dec. 31, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal raised $750,000 from a lone investor on Dec. 31, and the company raised $925,000 with seven investors on Jan. 20.
The 6% notes mature on Dec. 31, 2016.
Up to 50% of each note’s principal and interest can be converted into common stock at a conversion price equal to the lesser of the average closing price of the stock during the 20 consecutive trading days preceding conversion and $2.20. Beginning Feb. 15, the remaining outstanding principal and interest can be converted into common stock at a conversion price equal to 85% of the average closing price of the common stock for the 15 consecutive trading days preceding conversion.
Craig-Hallum Capital Group LLC acted as the placement agent.
Settlement of the final tranche is expected Jan. 31.
Transgenomic is a biotechnology company based in Omaha.
| Issuer: | Transgenomic, Inc.
|
| Issue: | Unsecured convertible promissory notes
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| Amount: | $2.25 million
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| Maturity: | Dec. 31, 2016
|
| Coupon: | 6%
|
| Conversion price: | Up to 50% of each note is convertible at the lesser of the average closing price of the stock during the 20 consecutive trading days preceding conversion and $2.20; beginning Feb. 15, the remaining 50% can be converted at 85% of the average closing price of the common stock for the 15 consecutive trading days preceding conversion.
|
| Warrants: | No
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| Agent: | Craig-Hallum Capital Group LLC
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| Settlement dates: | Dec. 31 (for $750,000), Jan. 15 (for $925,000), Jan. 31
|
| Stock symbol: | Nasdaq: TBIO
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| Stock price: | $2.26 at close Dec. 30
|
| Market capitalization: | $14.39 million
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