TRKA - Troika Media Group stock slumps on pricing $50M in convertible preferred stock and warrants

Troika Media Group (NASDAQ:TRKA) is down 11.8% premarket Thursday after the firm has entered into a securities purchase agreement with certain institutional investors to purchase $50M of its Series E convertible preferred stock and warrants in a private placement. Under the terms, TMG has agreed to sell 500K shares of its Series E preferred and warrants to purchase up to 33.33M shares of the company’s common stock. Each share of the Series E Preferred will have a stated value of $100/share and be convertible after the closing date into shares of common stock at a conversion price of $1.50 per share. The warrants will be exercisable immediately upon the date of issuance and have an exercise price of $2.00/share and will expire five years from the date of issuance. Offering is expected to close on or about March 21, 2022. Net proceeds will be used for its previously announced acquisition of Converge

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Troika Media Group stock slumps on pricing $50M in convertible preferred stock and warrants