Preferreds sold at $1.15 each along with warrants for 2,065,891 shares
By Devika Patel
Knoxville, Tenn., Feb. 4 – Cachet Financial Solutions, Inc. settled a $2.38 million private placement of 8% series B convertible preferred stock on Feb. 3, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company sold 2,065,891 preferreds at $1.15 per preferred.
Each preferred will initially be convertible into common shares at $1.15 per share. The company may force conversion.
The investors also received warrants for 2,065,891 common shares. The warrants are each exercisable at $1.15 for five years.
The strike price and conversion price are a 2.68% premium to the $1.12 closing share price on Feb. 2.
Minneapolis-based Cachet is a cloud-based software-as-a-service provider of remote deposit capture and mobile wallet services.
| Issuer: | Cachet Financial Solutions, Inc.
|
| Issue: | Series B convertible preferred stock
|
| Amount: | $2,375,775
|
| Shares: | 2,065,891
|
| Price: | $1.15
|
| Dividends: | 8%
|
| Conversion price: | $1.15
|
| Call: | Yes
|
| Warrants: | For 2,065,891 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.15
|
| Settlement date: | Feb. 3
|
| Stock symbol: | OTCBB: CAFN
|
| Stock price: | $1.12 at close Feb. 2
|
| Market capitalization: | $19.1 million
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