Grandparents.com wraps $100,000 tranches of $3.5 million convertibles

12% notes due June 1, 2013, were sold in units with five-year warrants

By Devika Patel

Knoxville, Tenn., Feb. 1 - Grandparents.com, Inc. completed two $50,000 tranches of a $3.5 million private placement of secured convertible promissory notes on Jan. 29 and Feb. 1, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal raised $550,000 on Dec. 7 and $300,000 on Dec. 14.

The 12% notes were sold in units priced at $50,000 apiece, with each unit consisting of one $50,000 note and a warrant for 50,000 shares.

The notes mature on June 1, 2013 and may be prepaid.

The warrants are each exercisable at $0.50 for five years. The strike price is a 66.67% premium to the Dec. 12 closing share price of $0.30.

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Issuer:	Grandparents.com, Inc.
Issue:	Units of a $50,000 secured convertible promissory note and a warrant for 50,000 shares
Amount:	$3.5 million
Price:	$50,000
Maturity:	June 1, 2013
Coupon:	12%
Call:	Yes
Warrants:	One warrant for 50,000 shares per unit
Warrant expiration:	Five years
Warrant strike price:	$0.50
Settlement dates:	Dec. 7 (for $550,000), Dec. 14 (for $300,000), Jan. 29 (for $50,000), Feb. 1 (for $50,000)
Stock symbol:	OTCBB: GPCM
Stock price:	$0.30 at close Dec. 6
Market capitalization:	$24.01 million

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