Update: In an earlier version of the article, we mistakenly stated that the financial transaction took place today. As you will read below, the transaction took place in October of last year. Please note this correction and we apologize for the inconvenience.
Cool Holdings Inc (NASDAQ: AWSM) is flying early on in the pre-market this morning, and for good reason. The company has been gaining in interest since the closing of a debt offering back in October of last year. Today, we’ll talk about:
- The debt offering closing;
- what we’re seeing from AWSM stock as a result; and
- what we’ll be watching for ahead.
AWSM Announces Closing Of Debt Offering
As mentioned above, Cool Holdings is having a great start to the trading session. The gains come after the company announced the closing of a debt offering.
The announcement came via press release on October 30, 2018. According to the release issued by AWSM the company has closed the private placement of convertible securities. As a result of the transaction, the company has raised $4 million through the transaction.
This was an important transaction for the company as the funds raised put it on a more solid financial foundation from which to build its brands further.
The transaction included 12% unsecured convertible notes that mature in 12 months. The notes are convertible into shares of the company’s common stock beginning six months after issuance. The conversion price is $4.25 per share.
In the release, AWSM said that the interest on the notes is payable in shares of common stock at the same rate at the earlier of conversion maturity. Those who purchased the notes received one warrant to purchase one-half share of common stock for each Conversion Share issuable under the notes.
The warrants included in this deal are exercisable starting six months after issuance. They will expire three years from the date of issuance.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Cool Holdings, the news proved to be positive.
After all, the transaction drives important funding into the company. So, it comes as no surprise to see that the stock is making a run for the top.
As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:00), AWSM is trading at $4.57 per share after a gain of $1.35 per share or 41.71% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AWSM. In particular, we’re interested in following the story surrounding the company’s continued work to expand its product offering and sales. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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