Aura Systems, Inc. (OTCBB: AUSI) announced today that it raised $2.5 million in a private placement from one individual. $2.0 million of the private placement was in the form of a 4-year convertible note with warrants and 9.5% simple annual coupon. The investor has the right to convert the outstanding Note at any time into common shares of the Company at a conversion price of $0.50 per share. For each common share that the Note is convertible into, the investor also received a 7-year warrant with an exercise price of $0.75.
The additional $500,000 was the extension and conversion of a previously funded demand Note (funded in April 2013) to a convertible note now due in January 2014. The conversion right on this Note is set at $0.50 per common share and the seven year attached warrants have an exercise price of $0.75 per share. The interest on this note is 9.5% per year. The Company is not required to file a registration statement for any part of this financing. There were no finders associated with this placement.
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