Business
Great Elm Capital Group, Inc. Announces Issuance Of $30 Million Convertible Notes and New Board Members
WALTHAM, Mass., Feb. 27, 2020 (GLOBE NEWSWIRE) -- Great Elm Capital Group, Inc. (NASDAQ: GEC, the “Company”) announced today that on February 26, 2020, it
About this update from Great Elm Group, Inc.
[{"type":"text","content":"WALTHAM, Mass., Feb. 27, 2020 (GLOBE NEWSWIRE) -- Great Elm Capital Group, Inc. (NASDAQ: GEC, the “Company”) announced today that on February 26, 2020, it issued $30 million in aggregate principal of 5.00% convertible senior PIK notes, due 2030 (“the Notes”). Investors in the Notes include the Company’s largest existing shareholders, funds managed by Imperial Capital Asset Management, LLC (“Imperial”) and Northern Right Capital Management LP, as well as specific members of a large alternative asset manager investing in their individual capacities. \n The Company also announced that Jason Reese, Chairman and Chief Executive Officer of Imperial, and Eric Scheyer, partner at Magnetar Capital, will join the Company’s Board of Directors (the “Board”). Mr. Reese will join the Board as Executive Co-Chairman alongside Co-Chairman Jeffrey Serota. Said Mr. Reese, “I am excited to work closer with the GEC team to help implement the Company’s ambitious growth plan and to create value for all shareholders.” “We are pleased to have completed the Notes offering, which we expect will allow the Company to pursue additional acquisition opportunities,” remarked Peter A. Reed, Great Elm’s Chief Executive Officer. “We appreciate the support and commitment of our largest shareholders. We are thrilled to further our business affiliation with Imperial and its affiliated businesses, which include Imperial Capital, LLC, a registered full service broker-dealer that provides extensive investment banking services to institutional investors. We believe Imperial Capital, LLC’s experience, access to deal flow and expertise in capital raising will help us accelerate the growth of our business. Furthermore, we welcome our new investors who have extensive relationships and considerable experience creating long-term value.” In connection with the new appointments to the Board, one of the Company’s existing directors, H. Steven Wilson, has submitted his resignation, effective February 25, 2020. Said Mr. Reed, “We are extremely grateful for Steve’s service on the Board. We have all benefited from his experience and insight and wish him the best of luck in his future endeavors.” Interest on the Notes will be payable semiannually, in kind or in cash at the Company’s option. The Notes may initially be converted at the investors’ option at $3.4722 per share. The Compan...