Examples of First Closing Note in a sentence
In May 2021, one of the 2020 Convertible Noteholders (the “Converting Noteholder”) converted the entire $7.5 million principal amount of such Converting Noteholder’s First Closing Note, and related accrued interest, amounting to approximately $0.04 million, into 1,256,143 shares of the Company’s common stock.
The SPA also gave the Company the right, but not the obligation, to request one of the 2020 Convertible Noteholders to purchase an additional $5.0 million in principal amount of a note (the “Second Closing Note”, and, together with the First Closing Note, the “2020 Secured Notes”).
Prior to the conversion of the First Closing Note, the aggregate carrying amount was presented net of a discount, comprised of a commitment fee paid to the Converting Noteholder, amounting to $0.2 million.
Ownership Structure of Target Immediately Prior to the First Closing Note: The shareholding percentages in the above structure chart are with reference to issued share capital.
The unamortized balances of the financing costs and the discount, during the period prior to the conversion of the related First Closing Note, were charged to interest expense over the respective terms of the First Closing Notes under the effective interest method.Upon issuance of the Second Closing Note, the carrying amount was presented net of a discount, amounting to approximately $3.1 million, which represented the value of the deemed beneficial conversion feature embedded in the Second Closing Note.
The Outstanding First Closing Note is secured by all the assets of the Company.
In 2020, pursuant to the terms of a Securities Purchase Agreement (the "SPA"), the Company issued secured convertible notes totwo investors which raised gross proceeds of$25 million, of which $15 million has been converted to common stock and $10 million remains outstanding (the "Outstanding First Closing Note").
In addition, the aggregate carrying amount of the First Closing Note in the accompanying December 31, 2020 condensed consolidated balance sheet is presented net of a discount, comprised of a commitment fee paid to the Converting Noteholder, amounting to $0.2 million.
The holder of the Outstanding First Closing Note is a significant customer of the Company, whose chief executive officer is a member of the Company’s Board of Directors.
In addition, the aggregate carrying amount of the First Closing Note in the accompanying December 31, 2020 condensed consolidated balance sheet is presented net of a discount, comprised of a commitment fee paid to the Converting Noteholder, amounting to $ 0.2 million.