Overland Storage Inc., a San Diego provider of data storage products, said it completed private placements of its securities resulting in gross proceeds of $14.25 million.
The offerings included $13.25 million in convertible promissory notes and a private placement of $1 million in common stock at 98 cents per share, with Roth Capital Partners acting as the placement agent in the equity offering.
The notes have a four-year term and carry an 8 percent annual interest rate. The notes are convertible to shares of the company’s common stock at an initial conversion price of $1.30 per share.
Overland said it expects to use the proceeds from the offerings for general corporate purposes which could include working capital and capital expenditures.
— SDBJ Staff Report