Cachet Financial Solutions Inc. paid $3.1 million to Trooien Capital LLC to settle its note payable to Trooien, which had been due Dec. 12 in the amount of $2.3 million. Cachet also agreed to issue a warrant for 500,000 common shares to Trooien, which may be purchased at the lower of $5.55 per share or 80% of Cachet's per-share price in its next public offering.
Cachet Financial also entered a securities purchase agreement with FirstFire Global Opportunities Fund LLC in which the company issued convertible promissory notes with a principal balance of $550,000, yielding gross proceeds of $500,000, on Dec. 22. The notes bear interest of 5% per year and are due June 12, 2017. FirstFire also received a warrant to buy up to 89,190 common shares at a price equal to the conversion price.
The company also entered a securities purchase agreement with the Sydne and Allan Bortel Family Trust, the Brian and Suzanne Swift Living Trust and Howard Miller, under which Cachet will issue them convertible notes due December 2017 in the amount of $131,580, as well as warrants to buy 21,337 common shares for $125,000 in cash.
In addition, Cachet Financial entered four other convertible term promissory notes Dec. 22. It issued a $75,000 note to Jon D and Linda W Gruber Trust, plus a warrant for 3,379 common shares; a $1.4 million note to FLMM Ltd. and a warrant to buy 64,865 common shares; a $50,000 note to Cachet Financial board member James Davis, plus a warrant to buy 2,253 shares; and an $85,000 note to director Michael Hanson, plus a warrant to buy 3,829 common shares.