root9B Holdings, Inc. Announces Incremental Funding And Status Of Foreclosure

By a News Reporter-Staff News Editor at Real Estate Weekly News -- root9B Holdings, Inc. (Nasdaq: RTNB) ("RTNB" or the "Company") announced that the Company secured incremental funding of $500,000 to allow the Company to meet its payroll obligations and for certain other working capital purposes by issuing secured convertible promissory notes along with warrants to purchase shares of the Company's common stock, par value $0.001 per share representing fifty percent (50%) warrant coverage.

On August 15, 2017, the Company filed a Current Report on Form 8-K disclosing the Company received a notice from Centriole Reinsurance Company, Ltd. as agent (the "Agent") for the secured creditors, that the Company had violated certain covenants set forth in the secured notes and demanded immediate repayment of all outstanding amounts due thereunder.

On August 18, 2017, the Company filed a Current Report on Form 8-K disclosing that the Company received a foreclosure notice from the Agent and that, to satisfy the Company's outstanding secured indebtedness, the Agent intended to sell substantially all of the assets of the Company at an auction to conclude August 31, 2017 (the "Sale Date"). This same filing noted that in the event the auction concludes with the sale of substantially all of the Company's assets, the value of the Company's securities would decline dramatically or become worthless. There has been no change in the foreclosure proceedings.

"While the Company is continuing its efforts to secure additional working capital and obtain waivers from the secured creditors it is unaware of any developments or information that would account for the significant volume of trading in our shares," said Eric Hipkins, RTNB's Chief Executive Officer.

Keywords for this news article include: Foreclosure, Real Estate, root9B Holdings Inc.

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