Data I/O Secures $9M Financing with $6.8M Debentures and 1.08M Warrants
DAIO•Data I/O closed a $9 million private placement issuing 869,840 common shares, $6.8 million of 4.0% convertible debentures and warrants for 1,080,000 shares at $3.00 each exercisable for five years. Net proceeds will fund working capital, corporate purposes and potential acquisitions to drive technological growth.
1. Financing Structure
Data I/O entered into a definitive securities purchase agreement raising $9 million in gross proceeds through the issuance of 869,840 common shares, convertible debentures totaling $6.8 million and warrants for 1,080,000 common shares. The private placement closes the previously announced investment and remains subject to registration and applicable securities laws.
2. Debenture and Warrant Terms
The unsecured convertible debentures bear interest at 4.0% per annum, payable in cash or Series B preferred stock, and mature in five years unless repaid or converted earlier. Warrants carry a $3.00 exercise price, are exercisable for five years, and both debenture conversion and warrant exercise restrictions will lapse upon shareholder approval under Nasdaq rules.
3. Proceeds Allocation and Strategic Goals
Data I/O intends to deploy net proceeds toward additional working capital, general corporate purposes and potential strategic acquisitions to accelerate growth and innovation in data provisioning solutions. Ladenburg Thalmann & Co. acted as exclusive placement agent, with Benchmark serving as financial advisor to support the company’s capital strategy.
