Color Star Technology Announces Pricing Of Initial $7M Tranche Of Up To $33M Registered Senior Secured Convertible Notes
Portfolio Pulse from Benzinga Newsdesk
Color Star Technology Co., Ltd. (NASDAQ:ADD) has announced the pricing of an initial $7 million tranche of up to $33 million in registered senior secured convertible notes. The notes, with a 6% interest rate and a 12-month maturity, are convertible into Class A Ordinary Shares at a price of $1.60 or the Alternative Conversion Price. The first closing is expected around September 30, 2024, and includes warrants for 2.9 million shares.
September 27, 2024 | 1:03 pm
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Color Star Technology is issuing $7M in convertible notes with a 6% interest rate, convertible into shares at $1.60. This could lead to stock dilution but also provides capital for growth.
The issuance of convertible notes provides Color Star with $7M in capital, which can be used for growth initiatives. However, the conversion of these notes into shares could lead to stock dilution, potentially impacting the stock price. The interest rate and conversion terms are standard, and the involvement of institutional investors suggests confidence in the company's prospects.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100