Cybersecurity company root9B Technologies said Monday it is selling up to $10 million in notes to various investors, according to a Securities and Exchange Commission filing.
The Charlotte-based company said that the notes can be converted to up to 12.5 million shares at a price not less than 80 cents per share.
The investors purchasing the notes are Bay Pond Partners LP, Ithan Creek Master Investors LP, and Wolf Creek Partners LP.
The company said it will use the proceeds for general corporate purposes.
root9B Technologies does not trade on a formal stock exchange. It trades on the OTCQB, the middle tier of the three marketplaces for trading over-the-counter stocks. Stocks are usually traded over-the-counter because the company is small and cannot meet exchange listing requirements.
The company has undergone a number of changes this year. In August, the company announced it will be a “pure play” cybersecurity company instead of continuing to provide other services, such as energy consulting, to its clients.
The board has approved an evaluation for the divestiture, or selling, of its non-cybersecurity assets, primarily its international division, and any remaining parts of its energy business.
Also in August, chief operating officer Brian King, 63, stepped down and is now a consultant with the company.
In an Aug. 18 press release, chief Executive officer Joseph Grano said the company’s second-quarter results were “disappointing despite new client engagements.”
Second-quarter gross profit fell to $1.5 million from $1.9 million in the same quarter a year ago.
The company raised $7 million in financing in the first six months of 2016.
Root9B’s shares closed Monday at 75 cents, down 5 cents.
Note: This story is from the North Carolina Business News Wire, a service of UNC-Chapel Hill’s School of Media and Journalism
