Deal includes warrants for 500,000 shares; note is due in one year
By Devika Patel
Knoxville, Tenn., Dec. 7 - GBS Enterprises Inc. completed a $1 million private placement of a secured promissory note with Pike H. Sullivan and Edward M. Giles on Nov. 30, according to an 8-K filed Friday with the Securities and Exchange Commission.
The note is due in one year and carries a 20% coupon.
The investors also received warrants for 500,000 shares, which are each exercisable at $0.20 for three years. The strike price is an 11.11% premium to the Nov. 29 closing share price of $0.18.
Based in Woodstock, Ga., GBS is a software and services company specializing in cloud automation and business software application modernization and transformation.
| Issuer: | GBS Enterprises Inc.
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| Issue: | Loan evidenced by secured promissory note
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| Amount: | $1 million
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| Maturity: | One year
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| Coupon: | 20%
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| Warrants: | For 500,000 shares
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| Warrant expiration: | Three years
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| Warrant strike price: | $0.20
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| Investor: | Pike H. Sullivan and Edward M. Giles
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| Settlement date: | Nov. 30
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| Stock symbol: | OTCBB: GBSX
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| Stock price: | $0.18 at close Nov. 29
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| Market capitalization: | $5 million
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