One investor has option to buy another $1.5 million convertibles
By Angela McDaniels
Tacoma, Wash., July 20 - Cytomedix, Inc. announced two private placements of convertible notes totaling $1.8 million. The proceeds will be used for general corporate and working capital purposes.
On July 15, the company agreed to sell up to $1.3 million of three-year convertible promissory notes to JMJ Financial Group Inc.
The initial $600,000 settled on July 18. Another $200,000 will be available within 60 days of the closing date provided that there is no event of default and the trading volume of the company's stock for the previous 22 trading days is at least $500,000. The remaining $500,000 is anticipated to be available in monthly installments of $150,000 each beginning in February 2012.
The investor has the option to purchase another $1.5 million of convertibles on substantially the same terms.
The notes carry a one-time 4% interest charge payable upon issuance, which can be paid in common stock at the conversion rate.
The conversion price is 80% of the average of the three lowest closing prices in the 20 trading days prior to conversion. The conversion price for the first $800,000 of notes will be subject to a ceiling of $0.80 and a floor of $0.25.
The company's closing share price on July 14 was $0.38.
12% convertibles
Also on July 15, the company placed $600,000 of 12% convertible notes due March 31, 2012 with four of its existing shareholders.
The conversion price is 90% of the volume-weighted average price for the 10 trading days prior to the conversion date, subject to a ceiling of $0.50 per share.
These convertibles can be prepaid at any time after Jan. 12, 2012 without penalty or premium.
Gaithersburg, Md.-based Cytomedix develops biologically active regenerative therapies for wound care, inflammation and angiogenesis.
| Issuer: | Cytomedix, Inc.
|
| Issue: | Convertible promissory notes
|
| Amount: | Up to $1.8 million
|
| Warrants: | No
|
| Stock symbol: | OTCBB: CMXI
|
| Stock price: | $0.3799 at close July 20
|
| Market capitalization: | $19.22 million
|
|
|
| 4% convertibles
|
| Amount: | Up to $1.3 million
|
| Maturity: | Three years
|
| Coupon: | 4%, payable in cash or stock
|
| Conversion price: | 80% of average of three lowest closing prices in 20 trading days prior to conversion; floor of $0.25 and cap of $0.80 for first $800,000 of notes
|
| Call option: | None
|
| Investor: | JMJ Financial Group Inc.
|
| Pricing date: | July 15
|
| Settlement date: | July 18 (for $600,000)
|
|
|
| 12% convertibles
|
| Amount: | $600,000
|
| Maturity: | March 31, 2012
|
| Coupon: | 12%, payable quarterly
|
| Conversion price: | 90% of volume-weighted average price for 10 trading days prior to conversion; capped at $0.50
|
| Call option: | Beginning Jan. 12, 2012
|
| Settlement date: | July 15
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
