Tonaquint may convert note into shares at conversion price of $0.03
By Susanna Moon
Chicago, July 6 - Cord Blood America, Inc. issued a 6% secured convertible promissory note to Tonaquint, Inc. for $1.25 million, according to an 8-K filed with the Securities and Exchange Commission on Monday.
The company note was issued on June 27 and will be due 20 calendar months after issue.
Interest will rise to 18% upon certain events of default.
Settlement occurred on June 29.
The investor may convert all or some of the outstanding amount of the company note into shares at a price of $0.03, which is a 200% premium to the company's closing price of $0.01 on June 26.
If the company is unable to make payments in cash or otherwise elects not to make a payment or payments in cash, the conversion price will be calculated by dividing the amount of the company note that is being converted by the market price of the stock, which is defined as 80% of the arithmetic average of the three lowest volume-weighted average prices of the shares during the 23 consecutive trading days immediately preceding the date as of which the price determination is required, such as the effective date of a conversion, the filing noted.
Cord Blood is a Los Angeles-based umbilical cord blood stem cell preservation company.
| Issuer: | Cord Blood America, Inc.
|
| Issue: | Secured convertible promissory note
|
| Amount: | $1,252,000
|
| Maturity: | 20 months
|
| Coupon: | 6%
|
| Conversion price: | $0.03
|
| Investor: | Tonaquint, Inc.
|
| Pricing date: | June 27
|
| Settlement date: | June 29
|
| Stock symbol: | OTC BB: CBAI
|
| Stock price: | $0.145 at close July 6
|
| Market capitalization: | $3.62 million
|
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