MCLEAN, Va., March 16, 2017 /PRNewswire/ -- Cyren
Ltd.(NASDAQ: CYRN), an internet Security as a Service
provider, today announced that it has entered into subscription
agreements with certain investors for the purchase of $6.3 million aggregate principal amount of
convertible notes in a private placement.
The notes will be unsecured, unsubordinated obligations of Cyren
and carry a 5.0% interest rate, payable semi-annually in 50% cash
and 50% cash or ordinary shares at Cyren's election. The notes will
have a 2.5 year term and mature in September
2019, unless converted in accordance with their terms prior
to maturity. The notes have a conversion price of $2.50 per share and are convertible into 400
ordinary shares per $1,000 principal
amount of notes. The conversion price shall be subject to
adjustment should future equity issuances be priced at less than
$2.10 per share.
The initial conversion price represents a 25% premium to the
$2.00 per share closing price of
Cyren's ordinary shares on the NASDAQ Capital Market on
March 15, 2017.
Cyren expects to use the proceeds of the offering for general
corporate purposes. The notes are subject to customary closing
conditions and approvals, and the sale is expected to close by
March 23, 2017.
This announcement is neither an offer to sell nor a solicitation
of an offer to buy any of these securities (including any shares of
Cyren ordinary shares, if any, into which the notes are
convertible) and shall not constitute an offer, solicitation or
sale in any jurisdiction in which such offer, solicitation or sale
is unlawful. The notes and the ordinary shares, if any, issuable
upon conversion of the notes have not been registered under the
Securities Act of 1933, as amended, or any state securities laws
and may not be offered or sold in the
United States absent registration or an applicable exemption
from such registration requirements.
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SOURCE Cyren