Quantum enters into Standby Equity Purchase Agreement with Yorkville Advisors

Quantum (QMCO) announced of its entry into a Standby Equity Purchase Agreement an investment fund managed by Yorkville Advisors Global, LP. Transaction includes access to additional equity capital and liquidity with discount fees of 3% and 4%. Limited initially to 1.15 million shares, remainder requires shareholder approval. Three years to access full amount with 100% at Company’s discretion. Covenant relief during the process to reduce its debt. The company states: “The Company’s agreement with Yorkville is initially limited to 19.99% of outstanding shares, or no more than 1,157,139 shares of common stock of the Company under the Purchase Agreement until shareholder approval is obtained. The Company intends to strategically use the SEPA to raise capital as desired, drawing on the available amount based on market conditions and business opportunities. Pursuant to the terms of the SEPA, the Company has the right, but not the obligation, to issue up to $200 million of shares of the Company’s common stock at any time during the three-year period following the execution date of the SEPA, subject to certain customary conditions. There is no obligation to utilize any portion available under the SEPA, and the Company retains control over both timing and volume. The SEPA does not impose any material restrictions on the Company’s operational activities. The per share price Yorkville will pay for the shares will be dependent on the one- or three-day pricing period elected by the Company at a discount of either 3% or 4%, as provided for in the SEPA. The Company expects that any proceeds received from such sales to Yorkville will be used for working capital and general corporate purposes, including the repayment of debt.”