$168,000 10% note due Feb. 13, 2016 was sold to Typenex Co-Investment
By Devika Patel
Knoxville, Tenn., March 6 – CrowdGather, Inc. sold a $168,000 convertible note to Typenex Co-Investment, LLC on March 2, according to an 8-K filed Friday with the Securities and Exchange Commission.
The 10% note matures on Feb. 2, 2016 and is convertible into common shares at a conversion price equal to the lesser of $0.10 and 65% of the average of the three lowest closing bid prices of the stock for the 20 trading days preceding conversion. It may be prepaid at 125.
Typenex also received warrants for $84,000 of shares. The warrants are each exercisable at $0.10 for five years. The strike price is a 42.86% premium to the Feb. 27 closing share price of $0.07.
Typenex was paid $3,000 in legal fees along with an original discount of $15,000 on the note, for total proceeds of $150,000 to the company.
CrowdGather is a Woodland Hills, Calif.-based internet company that specializes in developing and hosting forum-based websites.
| Issuer: | CrowdGather, Inc.
|
| Issue: | Convertible note
|
| Amount: | $168,000
|
| Maturity: | Feb. 2, 2016
|
| Coupon: | 10%
|
| Price: | $150,000
|
| Conversion price: | The lesser of $0.10 and 65% of the average of the three lowest closing bid prices of the stock for the 20 trading days preceding conversion
|
| Call: | At 125
|
| Warrants: | For $84,000 of shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.10
|
| Investor: | Typenex Co-Investment, LLC
|
| Fees: | $3,000
|
| Settlement date: | March 2
|
| Stock symbol: | OTCBB: CRWG
|
| Stock price: | $0.07 at close Feb. 27
|
| Market capitalization: | $6.61 million
|
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