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Subsequent Event
12 Months Ended
Dec. 31, 2016
Subsequent Events [Abstract]  
Subsequent Event

15. Subsequent Event

On March 22, 2017, the Company entered into a securities purchase agreement (the “Purchase Agreement”) with certain institutional and accredited investors (collectively, the “Purchasers”), including certain directors and executive officers of the Company, providing for the sale by the Company of 1,809,628 shares of its common stock at a purchase price of $2.00 per share, 15,245 shares of preferred shares (the “Preferred Shares,”) and a newly designated Series A Convertible Preferred Stock (the “Series A Convertible Preferred Stock”) at a purchase price of $1,000 per share (which Preferred Shares are convertible into approximately 7,622,372 shares of the Company’s common stock, subject to limitations on conversion until the approval by the Company’s stockholders and warrants to purchase up to 9,432,000 shares of its Common Stock at an exercise price of $2.00 per share (the “Warrants”), in a private placement (the “Private Placement”). The Warrants will become exercisable following stockholder approval, are subject to certain ownership limitations, and expire five years after the date of such stockholder approval.

The aggregate gross proceeds for the Private Placement is approximately $18.9 million. The Company intends to use the net proceeds from the Private Placement for general corporate and working capital purposes. Certain directors and executive officers of the Company purchased an aggregate of $2.35 million of shares of Series A Convertible Preferred Stock, which shares are convertible into approximately 1,175,000 shares of Common Stock, and Warrants to purchase up to 1,175,000 shares of the Company’s common stock. Pursuant to the terms of the Purchase Agreement, from the closing until the later of 90 days after the effective date of a resale registration statement or the date of stockholder approval, the Company is prohibited from issuing, or entering into any agreement to issue, or announcing the issuance or proposed issuance of, any shares of the Company’s common stock or common stock equivalents, subject to certain permitted exceptions.

A total of 15,245 shares of Series A Convertible Preferred Stock will be authorized for issuance under a Certificate of Designation of Preferences, Rights and Limitations of Series A Convertible Preferred Stock of the Company (the “Certificate of Designation”), to be filed with the Secretary of State of the State of Delaware in connection with the closing. The shares of Series A Convertible Preferred Stock have a stated value of $1,000 per share and will be convertible into approximately 500 shares of the Company’s common stock. Until the date that stockholder approval is obtained, the Certificate of Designation limits the number of shares of common stock issuable upon conversion of the Series A Convertible Preferred Stock such that, when aggregated with the shares of common stock issued at the closing, such issuances shall not exceed 19.99% of the Company’s issued and outstanding common stock.

The Series A Convertible Preferred Stock will be entitled to dividends on an as-if-converted basis in the same form as any dividends actually paid on shares of the Company’s common stock or other securities.  The initial conversion price of $2.00 is subject to appropriate adjustment in the event of a stock split, stock dividend, combination, reclassification or other recapitalization affecting the Company’s common stock. In addition, for a period ending on the earlier of one year from effective date of a resale registration Statement or the date on which there are no shares of Series A Convertible Preferred Stock outstanding, the conversion price is also subject to full ratchet anti-dilution protection in the event the Company issues securities at an effective price less than the initial conversion price, subject to certain exceptions.

On March 30, 2017, the Company entered into a sixth amendment to the Amended Credit Facility with MidCap and a first amendment to the Globus Facility Agreement with Globus (collectively the “2017 Amendments).  The 2017 Amendments extend the date that the financial covenants of the Amended Credit Facility and the Globus Facility Agreement are effective from April 2017 to April 2018.