Sequans Communications Announces $12M Debt Financing

4G chipmaker Sequans Communications S.A.

today announced that it has completed the sale of a convertible note in the principal amount of $12 million to a single institutional investor in a private placement transaction. The company intends to use the proceeds for general corporate purposes. "We have achieved an important financing goal," said Georges Karam, Sequans CEO. "Particularly gratifying is the confidence in the company indicated by this transaction with an existing Sequans investor." The convertible note will mature in April 2018 and will bear interest at a rate of 7% per year, paid in kind annually on the anniversary of the issuance of the note. The note will be convertible, at the holder's option, into the company's American Depositary Shares ("ADSs") at a conversion rate of 540.5405 ADSs for each $1,000 principal amount of the note, subject to certain adjustments, which equates to an initial conversion price of $1.85 per ADS. B. Riley & Company acted as advisor for the transaction. This press release includes a summary of the general terms of the transaction. The complete terms of the financing are included in a Form 6-K to be filed by Sequans with the Securities and Exchange Commission on April 15, 2015. The convertible note and underlying shares have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offering sold would be unlawful.