ATLANTA, April 15, 2022 (GLOBE NEWSWIRE) — American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) (the “Company”) today announced that it has entered into a securities purchase agreement for the sale of a new series of senior secured convertible notes (the “Notes”) to an institutional investor, subject to customary closing conditions. The proceeds, after original issue discount, will total $10 million, before payment of commissions and expenses.
Provided no Event of Default (as defined in the Notes) has occurred, the Notes will not accrue interest, and the Company will be required to redeem $800,000 of the outstanding amounts under the Notes each month commencing August 1, 2022, until the maturity date of October 1, 2023, at which time all outstanding amounts remaining, if any, will be due and payable in full.
At the Company’s option, each redemption payment can be made in cash or stock at a discount to the then-current closing bid price at the time of the redemption.
The investor will also have the right to an accelerated conversion of any or all of the outstanding balance of the Notes into stock at a conversion price of $0.99 per share.
The Notes will be secured by substantially all assets of the Company and will rank superior to all outstanding and future indebtedness of the Company.
The Company expects to use the proceeds from the sale of the Notes to strengthen the balance sheet of the Company and help in the execution of its newly focused “pure-play” converged communications strategy in the wake of the previously completed divestiture of its Computex business.
Northland Capital Markets served as sole placement agent in the transaction.
About American Virtual Cloud Technologies, Inc.
American Virtual Cloud Technologies, Inc. (NASDAQ:AVCT) is a premier global cloud communications offering proprietary UCaaS, CPaaS, and CCaaS …