Overland Storage Announces Financing of $14.25 Million of Convertible Notes and Common Stock

Overland Storage Announces Financing of $14.25 Million of Convertible Notes and 
Common Stock 
SAN DIEGO, CA -- (Marketwire) -- 02/13/13 --  Overland Storage, Inc.
(the "Company") (NASDAQ: OVRL), a trusted global provider of
effortless data management and data protection solutions across the
data lifecycle, today announced the completion of private placements
of its securities resulting in aggregate gross proceeds to the
Company of $14.25 million. The offerings included (1) the private
placement of $13.25 million convertible promissory notes (the
"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 (the "Equity Offering"). 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.  
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities described
herein, nor shall there be any sale of these securities in any state
or jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of any such state or jurisdiction.  
The Notes and shares of the Company's common stock issuable upon
conversion of the Notes and as payment of interest on the Notes have
not been registered under the Securities Exchange Act of 1933, as
amended (the "Securities Act"), and may not be offered or sold within
the United States absent registration or an exemption from
registration under the Securities Act.  
A shelf registration statement relating to the shares of common stock
offered in the Equity Offering has been filed with the Securities and
Exchange Commission (the "SEC") and was declared effective by the SEC
on February 28, 2012. A prospectus supplement relating to the Equity
Offering has been filed with the SEC. Copies of the prospectus
supplement and accompanying prospectus may be obtained directly from
the Company by contacting the Company at the following address:
Overland Storage, Inc., 9112 Spectrum Center Boulevard, San Diego,
California 92123.  
About Overland Storage, Inc. 
Overland is a trusted global provider of effortless data management
and data protection solutions across the data lifecycle. By providing
an integrated range of technologies and services for primary,
nearline, offline, archival, and cloud data storage, Overland makes
it easy and cost effective to manage different tiers of information
over time. Whether distributed data is across the hall or across the
globe, Overland enables companies to focus on building their business
instead of worrying about data growth. Overland SnapScale,
SnapServer, SnapSAN, NEO Series and REO Series solutions are
available through a select network of value added resellers and
system integrators. For more information, visit
www.overlandstorage.com. 
Safe Harbor Statement 
This press release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995
regarding the sale of the Company's securities and the intended use
of proceeds from the offerings. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to
differ materially, including risks associated with the Company's
ability to continue to raise capital as needed to fund its
operations, the risk that the Company's intentions regarding the use
of proceeds may change and other risks detailed from time to time in
the Company's filings with the Securities and Exchange Commission,
including, without limitation, the Company's most recent filings on
Forms 10-K, 10-Q and 8-K. These forward-looking statements represent
the Company's views only as of the date they are made and should not
be relied upon as representing the Company's views as of any
subsequent date. The Company does not intend to update any of the
statements in this press release upon further developments. 
Overland Storage, SnapScale, SnapServer, SnapSAN, NEO, REO and the
Overland logo are trademarks Overland Storage, Inc., that may be
registered in some jurisdictions. All other trademarks used are owned
by their respective owners. 
Connect with Overland Storage:
 Follow Overland on Twitter:
www.twitter.com/OverlandStorage 
 Visit Overland on Facebook:
www.facebook.com/OverlandStorage 
Overland Storage, SnapScale, SnapServer, SnapSAN, NEO, REO and the
Overland logo are trademarks Overland Storage, Inc., that may be
registered in some jurisdictions. All other trademarks used are owned
by their respective owners. 
Investor Relations Contact:
Todd Kehrli
MKR Group Inc.
todd@mkr-group.com
323-468-2300 
Media Contact:
Scott Kline
Bhava Communications
Skline@bhavacom.com
818-322-7660 
 
 
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