Deal sells 18-month notes with warrants for 15,923,567 common shares
By Devika Patel
Knoxville, Tenn., Dec. 5 - WPCS International Inc. said it has arranged a $4 million private placement of senior secured convertible notes.
The 4% 18-month notes are convertible into common shares at $0.3768 per share.
The investors also will receive warrants for 15,923,567 shares, which are each exercisable at $0.471 for five years.
The conversion price and strike price reflect a 19.83% discount and 0.21% premium to the Dec. 4 closing share price of $0.47.
Settlement is expected Wednesday.
The company said it plans to initially draw down about $2.2 million to retire its existing $2 million senior revolving line of credit with Sovereign Bank, NA.
Based in Exton, Pa., WPCS provides design-build engineering services for specialty communications systems and wireless infrastructure.
| Issuer: | WPCS International Inc.
|
| Issue: | Senior secured convertible notes
|
| Amount: | $4 million
|
| Maturity: | 18 months
|
| Coupon: | 4%
|
| Conversion price: | $0.3768
|
| Warrants: | For 15,923,567 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.471
|
| Settlement date: | Dec. 5
|
| Stock symbol: | Nasdaq: WPCS
|
| Stock price: | $0.47 at close Dec. 4
|
| Market capitalization: | $2.99 million
|
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