Rockley Photonics (NYSE:RKLY) announced today that it entered into agreements for an $81.5 million private placement.
Participating investors agreed to purchase $81.5 million in convertible senior secured notes (due 2026) and warrants to purchase 26.5 million Rockley ordinary shares at an exercise price of $5 per share, subject to certain anti-dilution adjustments.
Warrants purchased in the placement will expire 10 years from the date of issuance. Oxford, England-based Rockley Photonics said in a news release that it plans to grant the initial purchasers of the notes an option to buy up to an additional $81.5 million in notes and warrants. The notes will bear cash interest at a rate of 9.5% per annum.
If Rockley elects to pay interest partially in cash and partially through the issuance of additional notes, at a rate of 5.75% payable in cash and 6.25% payable in kind through the issuance of additional notes. They will be convertible at an initial convers…