Digital Power Corp (NYSEAmerican:DPW), a firm looking to increase revenues through organic growth and acquisitions, has recently finalized different deals. On December 4, 2017, the company finalized a Securities Purchase Deal with an investor, following which the firm has agreed, to issue and offer to the investor restricted common stock amounting 150,000 shares and an Original Issue Discount Convertible Debenture for $500,000, with a principal FV of $550,000. The deal is anticipated to close soon after listing nod from the NYSE American is received. The firm and the investor finalized a deal based on an understanding extended on November 22, 2017.
Digital Power reported that the Debenture showcases a term of 8-months, has interest at 5% yearly and the principal of the Debenture as well as interest earned on it may be converted into shares at $0.60 a share, subject to anti-dilution. However, if the firm consummates any equity or debt financing with gross proceeds to the firm equal to or greater than $7.5 million, then the firm shall prepay to the shareholder in cash 110% of the due principal sum of the Debenture and any unpaid and accrued interest if the completion of such deal occurs within 90 days from the original release date of the Debenture.
Also, the firm shall prepay to the holder 115% of the due principal sum of the Debenture and any unpaid and accrued interest if the completion of such deal happens between 91 days from the initial issue date as well as the Debenture maturity date.
Digital Power reported that the firm has the alternative to prepay all sums owed under the Debenture at a rate of 110% within ninety days from the initial issue date as well as 115% from 91 days from the initial release date to the maturity date.
In the last trading session, the stock price of Digital Power declined more than 3% to close the day at $3.30.