Socket Mobile completed a $500,000 secured subordinated convertible note financing with a 10% interest rate, three-year term, and conversion price of $0.90 per share.
Key takeaways
The Company raised $500,000 through secured subordinated convertible notes to increase working capital balances.
Notes carry a 10% annual interest rate payable quarterly in cash and mature on March 27, 2029.
Holders may convert principal into Common Stock at $0.90 per share or demand repayment after March 27, 2027.
The Notes are secured by Company assets and subordinated to senior debt with Western Alliance Bank.
Chairman Charlie Bass participated in the financing, which was approved by a special committee of disinterested directors.