By Sheri Kasprzak
New York, Nov. 9 - Tripath Technology Inc. said it has concluded a private placement of senior secured convertible debentures for $5 million.
The 6% debentures mature on Nov. 8, 2007 and are convertible into common shares at $0.37 each.
In case of a reverse stock split or delisting, the conversion price will be reset on the 60th day after that event to the lower of either the then-prevailing conversion price or the volume weighted average price of the company's stock for 10 trading days before the date of reset.
Monthly principal and interest payments on the debentures begin April 8, 2006.
The investors will also receive series A warrants for up to 6,756,757 common shares, exercisable at $0.37 each through the earlier of July 1, 2006 or 30 days after a registration statement is declared effective. The company is also issuing series B warrants for up to 8,720,930 shares, exercisable at $0.43 each through May 8, 2011. The series B warrants become exercisable on May 8, 2006.
Enable Growth Partners, LP was the placement agent for the offering.
Proceeds will be used for general corporate purposes.
Based in San Jose, Calif., Tripath makes semiconductors for the digital media consumer electronics and communications markets.
| Issuer: | Tripath Technology Inc.
|
| Issue: | Senior secured convertible debentures
|
| Amount: | $5 million
|
| Maturity: | Nov. 8, 2007
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | $0.37
|
| Series A warrants: | For up to 6,756,757 shares
|
| Series A expiration: | The earlier of July 1, 2006 or 30 days after registration statement is declared effective
|
| Series A strike price: | $0.37
|
| Series B warrants: | For up to 8,720,930 shares
|
| Series B expiration: | May 8, 2011
|
| Series B strike price: | $0.43
|
| Placement agent: | Enable Growth Partners, LP
|
| Settlement date: | Nov. 9
|
| Stock price: | $0.45 at close Nov. 8
|
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