Broadcast International Prepares to Raise $15 Million
Broadcast International, a video compressor based in Salt Lake City, said it has done the paperwork to sell $15 million in senior secured notes.
BI, which holds the patents to the video compression technology CodecSys, is traded over-the-counter under BCST.OB. The share price fell from $3.70 to $3.65 in the moments after the news hit. The company’s market cap at $3.65 is about $76 million, with more than 21.3 million outstanding shares.
The $15 million comprises 6.25 percent convertible promissory notes due Dec. 21, 2010 sold to “certain accredited investors,” BI said. The notes are convertible into shares of BI common stock at $5.45 per share, subject to adjustments. Note holders will receive in aggregate 1 million shares of BI common stock and warrants to purchase another 1.8 million more shares. They will also have first lien on BI assets.
Net proceeds for the sale will be used for “general corporate purposes,” the company said.