Quantum Corporation (NASDAQ: QMCO) announced three concurrent transactions designed to strengthen its balance sheet and provide growth capital. The company raised $100 million through a private placement led by Two Seas Capital LP and Oaktree Capital Management, L.P., with participation from other institutional investors.

The company sold 10,615,712 shares of common stock at $9.42 per share in the private placement. Quantum plans to use approximately $94.7 million of the net proceeds to repay all existing term debt, with the remainder allocated for working capital and general corporate purposes.

Dialectic Technology SPV LLC, the sole beneficial owner of Quantum's Senior Secured Convertible Notes, agreed to convert the entire outstanding principal amount of those notes, plus accrued interest, into common stock. The conversion will result in the issuance of 14,104,620 shares to Dialectic at a conversion price of $5.194 per share. Dialectic will also receive a warrant to purchase up to 105,911 shares at the same exercise price.

"This transaction represents a significant step forward for Quantum," said CEO Hugues Meyrath. "We have meaningfully strengthened our balance sheet, eliminated our debt position, and brought in new capital to support the business."

The transactions are expected to eliminate Quantum's debt obligations and result in a positive net cash position. The company operates in the data storage sector, providing solutions for AI and enterprise environments.

Cantor served as lead placement agent and Lake Street Capital Markets acted as placement agent for the private placement. The securities were sold in a private placement and have not been registered under the Securities Act of 1933.