HLSQ obtains additional $5M revolving credit line from Mandragola

Tessera Defense (HLSQ) entered into a new $5 million revolving credit facility with Mandragola, convertible at the lower of recent low closing price or $1.00, with conversion capped at 19.99% of outstanding shares unless stockholder approval is obtained. The 12% interest rate and convertible structure increase dilution risk, though no funds have been drawn yet.

The company borrowed access to up to $5 million more from an Israeli lender, but if the lender converts that debt to stock, it could dilute existing shareholders by up to 20%.