Deal sells 1.1 million preferreds at $0.50 apiece; $605,000 of notes
By Devika Patel
Knoxville, Tenn., Dec. 31 – Orbital Tracking Corp. completed a $1.1 million private placement of series F convertible preferred stock and original issue discount convertible notes on Dec. 28, according to an 8-K filed Wednesday with the Securities and Exchange Commission. It raised $550,000 through the preferreds and $550,000 from the sale of the $605,000 of notes.
The company sold 1.1 million preferreds at $0.50 apiece, which is a 71.43% discount to the Dec. 24 closing share price of $1.75.
The preferreds are convertible into common stock at $0.50 per share, which is also a 71.43% discount to the Dec. 24 closing share price.
The convertibles do not bear interest, mature on Dec. 28, 2017 and convert into common stock at $1.00 per share, a 42.86% discount to the Dec. 24 closing share price.
Chardan Capital Markets, LLC was the agent.
Proceeds will be used for expansion in North America and new markets in Asia, as well as production and manufacturing of a new line of dual-mode asset tracking products.
“We are pleased to have completed this important round of funding which will allow us to continue our global expansion in key geographies including the United States and in new markets in Asia where we continue to see strong demand for cost effective and reliable satellite communications products,” chief executive officer David Phipps said in a press release.
“As we enter 2016, this new capital will support our long-term growth plans while supporting the launch of our new dual-mode tracking products designed to uniquely meet the global tracking needs of our clients and an expanding commercial and government new business pipeline.”
The satellite telecommunications company is based in Aventura, Fla.
| Issuer: | Orbital Tracking Corp.
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| Issue: | Series F convertible preferred stock, original issue discount convertible notes
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| Amount: | $1.1 million
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| Warrants: | No
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| Agent: | Chardan Capital Markets, LLC
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| Settlement date: | Dec. 28
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| Stock symbol: | OTCBB: TRKK
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| Stock price: | $1.75 at close Dec. 24
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| Market capitalization: | $14.74 million
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| Preferreds
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| Amount: | $550,000
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| Preferreds: | 1.1 million
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| Price: | $0.50
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| Conversion price: | $0.50
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| Convertibles
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| Amount: | $605,000
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| Maturity: | Dec. 28, 2017
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| Price: | $550,000
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| Coupon: | 0%
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| Conversion price: | $1.00
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