StockerYale refinances $2.3m loan
StockerYale will be unloading more stock in order to refinance a $2.3 million loan and cut its monthly payments in half, according to the filings with the Securities and Exchange Commission.
The cash-strapped provider of photonic devices will be selling 300,000 shares for a penny a share to Laurus Master Fund Ltd., a New York investment firm. During the last five days the Salem firm’s stock price hovered at $1.40 a share. In addition, StockerYale will pay Laurus a $77,000 financing fee.
In return, Laurus will extend repayment terms of its current loan to StockerYale for another 18 months to June 30, 2010. The monthly interest and principal will drop from $121,212 to $60,000.
It’s not the first time StockerYale has sold stock at a discount to obtain financing.
In January it sold 2 million shares to Highbridge Capital Management LLC for $2.3 million, or $1.15 a share. The stock opened that day at $1.57 per share and closed at $1.43 a share.
At the end of the first quarter the firm had $1.6 million in cash, the equivalent of the net loss the company during that quarter. – BOB SANDERS