Socket Mobile, Inc. (SCKT) recently completed a financing of $1.53 million for secured subordinated convertible notes. The leading innovator of data capture and delivery solutions for enhanced productivity will be using the proceeds to strengthen its working capital balances.
SCKT issued the notes for a term of three years with maturity date of August 30, 2023. The company will be paying an interest of 10% on the issued notes. The interest will be paid in cash at the end of every quarter. The holder of each note after completion of 1 year of issuance of bond which is August 31, 2021, will become eligible to require the company to repay principal amount of the note as well as interest accrued thereon.
The company issued the note putting its assets as security and those notes are also subordinated to the Company’s debts with Western Alliance Bank, which is senior lender of the company. The holder of each note has an option available to convert principal amount of the note into common stock of the company. The conversion can be made at any time at the price of $1.46 per share, which was the closing price of the company’s share on August 28, 2020 on the Nasdaq Capital Market and the most recent at the time of the company’s completion of the said financing.
Chairman of the Company’s Board of Directors Charlie Bass, Socket Mobile’s Chief Executive Officer and Director Kevin Mills, Chief Financial Officer and Director of the company Lynn Zhao and other members of the SCKT’s management team were included among those who invested in current financing.
Previously in a move to expand its scanning sled portfolio, company came introducing DuraSled for the XCover Pro. The two versions of the XCover Pro DuraSled have been launched. The DS800 XCover Pro version is for 1D barcode scanning while the DS840 XCover Pro is for both 1D and 2D barcode scanning.