CCH Holdings Completes $2.5M Convertible Note Offering, Registers Resale
CCHH is trading near its 52-week low of $0.9 (1.3% above the low).
Summary
CCH Holdings closed the remaining $1.25M principal of its $2.5M convertible note, receiving $1.035M net after a $115,000 discount. The registration statement for resale of underlying shares was declared effective September 29. This follows the initial $1.15M closing on July 31 and the F-1 filings in August and September. The note carries a 90% VWAP conversion discount and a $0.282 floor, terms that are highly dilutive to existing shareholders. The company also eliminated its right to reset the floor price, capping the economic difference payable below the floor. With the stock near its 52-week low and a market cap around $18M, this financing provides needed capital but at significant cost to shareholders. CCH Holdings received aggregate gross proceeds of $2.185 million under the purchase agreement after the subsequent closing.
Updated with an SEC 6-K filing · What changed
Updates
· SEC 6-K — CCH Holdings received aggregate gross proceeds of $2.185 million under the purchase agreement after the subsequent closing.
At the time of this announcement, CCHH was trading at $0.91 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $18.1M. The 52-week trading range was $0.90 to $153.90. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.