AMSC listed its ‘use of proceeds’ as being for working capital and general corporate purposes as an added backstop for its business as it moves to grow and diversify its business strategy while reducing its cash usage.
Today’s notes are scheduled to amortize in monthly installments beginning four months from issuance and ending on October 4, 2014 and the investor received has warrants to purchase approximately 3.1 million additional shares of common stock at a $5.45 strike price until October 4, 2017.
What is interesting is that AMSC could actually be raising $40 million rather than $25 million. The company has the right, subject to certain conditions, to require the investor to purchase up to an additional $15 million of convertible notes and additional warrants from AMSC.
Shares closed Tuesday at $4.00 and the 52-week trading range is $3.21 to $25.06.
JON C. OGG
Contact [email protected] for any questions or corrections.
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