STREAMLINE HEALTH SOLUTIONS, INC. Streamline Health Solutions, Inc. announced that it has entered into a securities purchase agreement to issue unsecured subordinated promissory notes in the aggregate principal amount of $4.4 million and warrants to purchase up to an aggregate of 4,052,631 common shares of the company at a par value $0.01 per share on February 1, 2024. The transaction will include participation from certain accredited investors, including certain directors and officers of the company. The notes will bear interest rate of 15% per annum and mature on August 7, 2026.
All accrued and unpaid interest on the notes will be capitalized and added to the outstanding principal balance of the notes and will be payable in cash on the maturity date. The rights of each Investor to receive payments under the Notes are subordinate to the rights of Western Alliance Bank. The Warrants have an exercise price of $0.38.
The warrants are immediately exercisable, and will expire on the fourth anniversary of the closing date. In connection with the Debt Private Placement, the Investors and each of the Company?s directors and officers agreed, subject to certain exceptions set forth in the lock-up agreements, not to offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise dispose of any shares of Common Stock, or any options or warrants to purchase any shares of Common Stock, or any securities convertible into, exchangeable for or that represent the right to receive shares of Common Stock, for a period commencing on the date of the lock-up agreement and ending 90 days from the Closing Date. The Notes and the Warrants described above were offered in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended, and/or Regulation D promulgated thereunder and, along with the Common Stock underlying the Warrants, have not been registered under the Securities Act or applicable state securities laws.
The securities were offered and sold to accredited investors as that term is defined in Rule 501(a) under the Securities Act.
