The company will pay interest to the investors on the outstanding principal amount at an annual rate of 5%, according to a report filed with the SEC. The convertible debentures mature on Dec. 21, 2021.
Prior to the maturity date, the convertible debentures can be converted into shares of common stock at $4.00 per share, iCad added.
The private placement, which closed earlier this month, resulted in net proceeds of roughly $6.5 million. The company said it plans to use the money for general corporate purposes.
In the same SEC report, iCad said that the company’s EVP & CFO Richard Christopher resigned to pursue “another professional opportunity.” The company named R. Scott Areglado, iCad’s corporate controller, as interim CFO.
Earlier this year, iCad re-jiggered its board of directors, naming a new chairman and reorganizing its oversight committees, after a member filed his resignation.
Longtime shareholder Andy Sassine tendered his resignation in September, writing that he could “no longer stand idly by while the Board’s inaction and misdirection directly harms the interests of iCad’s shareholders.”