Business
Forian Inc. Announces $24 Million Private Placement of 3.5% Convertible Notes due 2025, Appoints New Chief Financial Officer
NEWTOWN, Pa., Sept. 1, 2021 /PRNewswire/ -- Forian Inc. (NASDAQ: FORA), a provider of technology, analytics and data science driven solutions for the
About this update from Forian Inc.
[{"type":"text","content":"NEWTOWN, Pa., Sept. 1, 2021 /PRNewswire/ -- Forian Inc. (NASDAQ: FORA), a provider of technology, analytics and data science driven solutions for the healthcare and cannabis industries, today announced the following:\n\n \n \n \n \n \n \n\n \nConvertible Notes Offering\nThe Company has entered into a convertible note purchase agreement (the \"Note Purchase Agreement\") with a select group of institutional and accredited investors pursuant to which the Company will issue $24,000,000 aggregate principal amount at 100% of par value of its 3.5% convertible notes due 2025 (the \"Notes\"). The Notes are convertible into (i) shares of the Company's common stock at a conversion price of $11.98, the consolidated closing bid price of the Company's common stock as reported by the Nasdaq Stock Market LLC on Tuesday, August 31, 2021, the last trading day preceding the Company's execution of the Note Purchase Agreement (the \"Conversion Price\") and (ii) warrants to purchase the number of shares of the Company's common stock equal to (a) twenty percent (20%) of the converted principal amount, divided by (y) the Conversion Price, which warrants will have an exercise price equal to the Conversion Price and will terminate at the maturity date (the \"Warrants\"). Interest will be added to the principal amount of the Notes and paid in kind upon conversion or in cash upon redemption at or prior to the September 1, 2025 maturity date. \nInvestors may, at any time, convert all or a portion of the Notes (subject to a minimum principal amount of $100,000) at the Conversion Price. The Company may redeem all or a portion of any Notes then outstanding at any time after the first anniversary of issuance at a price of 112.5% of par value plus accrued interest. In the event of a change of control of the Company, the Company may redeem all Notes then outstanding at a price of 108% of par value plus accrued interest. \nInvestors include both unaffiliated investors as well as a director of the Company. Martin J. Wygod, a director of the Company, purchased $6,000,000 principal amount of Notes. Unaffiliated investors purchased the remaining $18,000,000 principal amount of Notes. An independent Special Committee of Forian's Board of Directors was established to review and negotiate the transaction on behalf of the Company. Two institutional investors led the negot...