By Devika Patel
Knoxville, Tenn., Dec. 26 - Wave Systems Corp. said it will conduct a $1.28 million direct offering of series K convertible preferred shares under a $25 million shelf registration statement.
The company will sell 456 preferreds at $2,800 apiece.
The 8% preferred stock may be converted into 10,000 common shares at any time or automatically on the date on which the average closing price per share of Wave class A common stock for the 15 consecutive trading day period then ended equals or exceeds $0.70.
In total, the preferreds may be converted into 4.56 million shares.
Investors will also receive warrants for 2,500 common shares for each preferred purchased, or a total of 1.14 million shares. The warrants are each exercisable at $0.28 for three years.
Security Research Associates is the agent.
Wave Systems is a Lee, Mass., maker of hardware and software-based digital security products for computers.
| Issuer: | Wave Systems Corp.
|
| Issue: | Series K convertible preferred shares
|
| Amount: | $1,276,800
|
| Preferred shares: | 456
|
| Price: | $2,800
|
| Dividends: | 8%
|
| Conversion ratio: | Into 4.56 million common shares
|
| Warrants: | For 1.14 million shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.28
|
| Agent: | Security Research Associates
|
| Pricing date: | Dec. 26
|
| Stock symbol: | Nasdaq: WAVX
|
| Stock price: | $0.39 at close Dec. 26
|
| Market capitalization: | $22.8 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
