nStor Closes Investment Deal With Halco Investments - EnterpriseStorageForum.com

nStor Closes Investment Deal With Halco Investments

Download the authoritative guide: Enterprise Data Storage 2018: Optimizing Your Storage Infrastructure

nStor Technologies, Inc., a provider of information storage systems, today announced that the previously reported stock purchase transaction, as modified, with Halco Investments L.C. closed on November 20, 2001.

According to the company, Halco purchased approximately $9 million of convertible preferred stock in exchange for $2.9 million in cash, $1.9 million of which was previously advanced to nStor, and approximately $6.1 million in New York Stock Exchange listed, marketable securities. Upon stockholder approval at the annual meeting of nStor's stockholders, currently scheduled for January 10, 2002, the preferred stock will be converted into common stock representing approximately 34% of nStor's total outstanding common stock at the time of conversion (based on a conversion price of $0.23 per share).

In addition, the $3.1 million in short-term financing previously advanced to nStor by Halco has been converted into a 5-year, 8% term loan. Halco is controlled by Maurice Halperin, the Chairman of the Board of Directors of nStor.

Upon stockholder approval and consummation of all of the transactions contemplated by the stock purchase agreement between nStor and Halco, including conversion of all of nStor's outstanding preferred stock, nStor anticipates that there will be approximately 115,000,000 shares of common stock outstanding, and nStor's net worth will be increased by more than $10.0 million.


Comment and Contribute

 


(Maximum characters: 1200). You have characters left.

 

 

Storage Daily
Don't miss an article. Subscribe to our newsletter below.

By submitting your information, you agree that enterprisestorageforum.com may send you ENTERPRISEStorageFORUM offers via email, phone and text message, as well as email offers about other products and services that ENTERPRISEStorageFORUM believes may be of interest to you. ENTERPRISEStorageFORUM will process your information in accordance with the Quinstreet Privacy Policy.

×
We have made updates to our Privacy Policy to reflect the implementation of the General Data Protection Regulation.
Thanks for your registration, follow us on our social networks to keep up-to-date