HOUSTON -- Tidel Technologies, Inc. (Nasdaq: ATMS) has completed the private sale of a $3 million subordinated convertible debenture to the Acorn Fund. The sale was on substantially the same terms as the $15 million convertible debenture sale announced last month and brings the final total of the convertible debt private placement to $18 million. Value Investing Partners, Inc. of New York again assisted with the transaction.
Tidel CEO James T. Rash said, "This transaction completes our recent financing efforts as we start our new fiscal year today. These funds enable us to execute a strategic plan to enhance customer relationships through a new financing program with our major distributors. In this regard, agreements with two major customers are nearing completion."
The company plans to announce quarterly and annual ATM shipments on Oct. 6, Rash said. "As in prior years, results for our fourth quarter and fiscal year will be announced upon completion of our annual independent audit in mid-December."
The 6 percent subordinated debentures are convertible into Tidel common stock at $9.50 per share and mature in September 2004. In connection with the financing, Tidel also issued five-year warrants to Acorn for the purchase of approximately 63,000 shares of common stock at an exercise price of $9.80 per share.
The securities issued in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the U.S. absent registration or an applicable exemption from registration requirements. Convertible debentures are hybrid securities that usually offer current income and can be converted into company stock. Their fortunes are closely tied to underlying stock prices.
The Acorn Family of Funds are managed by Chicago-based investment advisor LibertyWanger Asset Management, L.P. LibertyWanger oversees approximately $9.5 billion and specializes in domestic and international mid-cap equities.
