Overland Announces $14 Million Financing

Overland Storage, Inc. announced the completion of private placements of its securities resulting in aggregate gross proceeds to the company of $14.25 million. The offerings included the private placement of $13.25 million convertible promissory notes and (2) the private placement of $1.0 million of common stock at a price of $0.98 per share (equal to the closing price on February 12, 2012) in a registered offering to an institutional investor.

Roth Capital Partners, LLC acted as placement agent in connection with the equity offering.

The notes have a four-year term and bear interest at a rate of 8% per annum payable semi-annually. The company may, subject to certain limitations, pay interest in cash or in shares of its common stock. The notes are convertible into shares of the company’s common stock at an initial conversion price of $1.30 per share. The company has also granted certain registration rights to the purchasers in connection with the notes.

The company expects to deliver the notes on February 13, 2013 and the closing of the equity offering is expected to occur on February 19, 2013.

The company intends to use the net proceeds from these offerings for general corporate purposes, which may include, among others, working capital needs and capital expenditures.