The notes pay an 8% coupon, have a three year maturity and a conversion price of $2.65 a share. The aggregate net proceeds of the notes, after deducting the placement agents’ fees and estimated offering expenses payable by the company, are expected to be approximately $36.7 million.
The company plans to use the net proceeds of the financing to retire its obligations under its current $15 million senior notes with Laminar Direct Capital and for working capital and general corporate purposes.