Deal includes warrant for 1,333,333 common shares, exercisable at $0.45
By Devika Patel
Knoxville, Tenn., May 6 – Accelerize Inc. arranged a loan for up to $8 million with SaaS Capital Funding II, LLC on May 5, according to an 8-K filed Friday with the Securities and Exchange Commission.
Initial amounts borrowed will accrue interest at the rate of 10.25%, with future borrowed amounts bearing interest at the greater of 10.25% or 9.21% plus the three-year Treasury rate at settlement. The loan may be prepaid with penalties ranging from 3% to 10%.
The company may request advances until May 5, 2018. The initial minimum advance amount is $5 million.
The company will pay an $80,000 facility fee in connection with the initial tranche and again on May 5, 2017.
SaaS Capital Partners II, LP, an affiliate of the lender, received warrants for 1,333,333 shares, which are each exercisable at $0.45 until the earlier of May 5, 2026 or five years after the company’s shares are listed on the Nasdaq exchange. The strike price reflects a 12.5% premium to the May 4 closing share price of $0.40.
The Newport Beach, Calif., company owns and operates CAKE and getcake.com, a marketing technology that provides a suite of marketing intelligence tools.
| Issuer: | Accelerize Inc.
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| Issue: | Loan
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| Amount: | $8 million
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| Maturity: | May 5, 2018
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| Coupon: | 10.25% initially, then greater of 10.25% or 9.21% plus the three-year Treasury rate
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| Warrants: | For 1,333,333 shares
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| Warrant expiration: | The earlier of May 5, 2026 or five years after the company’s shares are listed on the Nasdaq
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| Warrant strike price: | $0.45
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| Investor: | SaaS Capital Funding II, LLC
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| Fees: | $160,000
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| Settlement date: | May 5
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| Stock symbol: | OTCBB: ACLZ
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| Stock price: | $0.40 at close May 4
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| Market capitalization: | $25.37 million
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