Rubico Announces $8.5 Million Registered Direct Offering of Senior Convertible Notes and Warrants
Rubico agreed to issue $9.44M of senior convertible notes to a single institutional investor for $8.5M in gross proceeds, carrying a 10% original issue discount and 8-10% interest. The Notes are convertible at $0.3646, but the investor can elect an alternate conversion at 85% of the lowest 10-day VWAP with a $0.10 floor -- a deeply discounted, potentially dilutionary structure. Warrants on 25.9M shares plus 1.3M commitment shares add further dilution. A second tranche could add $5M more in proceeds, and Maxim Group is acting as sole placement agent.
Key figures
- Deal Value Usd
- 8500000
- Offering Price
- 0.3646
- Floor price
- 0.1
- Warrant shares
- 25903577
- Maturity months
- 12
- Commitment shares
- 1295179
- Cash interest rate
- 8.00%
- Aggregate principal
- 9444444
- Shares interest rate
- 10.00%
- Fixed conversion price
- 0.3646
- Warrant exercise price
- 0.3646
- Original issue discount
- 10%
- Second tranche principal
- 5555556
- Gross proceeds first tranche
- 8500000
- Alternate conversion discount
- 85% of lowest 10-day VWAP
- Second tranche gross proceeds
- 5000000
AI analysis
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