RKLY - Rockley Photonics announces $90.6M private placement of notes warrants

• Rockley Photonics ( NYSE: RKLY ) on Tuesday announced a $90.6M private placement of a new series of convertible senior secured notes due 2026 and warrants to buy 131.6M shares at $1.1182/share.
• The firm will use ~$63.9M of the proceeds to repurchase ~$12.4M of outstanding senior secured notes due 2022 and $50M of its existing outstanding convertible senior secured notes due 2026.
• ~$14.5M of the proceeds will be placed in an escrow account for release to Rockley ( RKLY ) at the direction of holders of the new notes due 2026.
• After the repurchases and placement of funds into escrow, $28.5M of existing notes will remain outstanding and Rockley ( RKLY ) will retain $10M of proceeds, which will be used for general corporate purposes.
• The amounts above include an investment by Rockley ( RKLY ) CEO Andrew Rickman in ~$1.1M of the new notes and warrants.
• The transaction is expected to close on Tuesday, Oct. 25.
• Rockley ( RKLY ) received a non-compliance notice regarding its minimum bid price .

For further details see: