February 23, 2010 (FinancialWire) — Overland Storage, Inc. (NASDAQ: OVRL) said it signed definitive agreements for a private placement of 794,659 shares of convertible preferred stock of the company and warrants to purchase up to 6,373,266 shares of common stock for a gross purchase price of around $12.0 million on February 18, 2010.

The preferred stock is initially convertible into 4,521,648 shares of common stock. The warrants will have an initial exercise price of $2.583 per share, which will expire February 22, 2015 and are exercisable in whole or in part, at any time prior to expiration. The transaction is scheduled to close on February 22, 2010 subject to customary closing conditions.

Overland plans to use the proceeds from the offering to fund product development, sales and marketing expansion and general working capital requirements.

California-based Overland Storage is a provider of data management and data protection solutions.

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