By Laura Lutz
Des Moines, Feb. 6 - MicroMed Cardiovascular, Inc. announced additional terms of its $10 million private placement of an unsecured convertible note in an 8-K filed Wednesday with the Securities and Exchange Commission.
E-Wilson LLC is the investor.
Micromed received $1 million of the proceeds at closing. The next advance, for $1.5 million, will settle after stockholders approve an increase in the company's authorized share capital to 750 million from 100 million.
The remaining tranches will consist of $2.5 million on July 1, $2.5 million on April 1, 2009 and $2.5 million on Jan. 4, 2010.
The note will bear interest at 7.5% per year. It will be convertible into common stock at $0.02 per share.
Micromed will be required to repay the note over two years, beginning in February 2011.
E-Wilson also received a warrant for 500 million shares minus any shares into which the note is convertible. The warrant strike price will be $0.02 per share.
MicroMed, based in Houston, develops heart pumps.
| Issuer: | MicroMed Cardiovascular, Inc.
|
| Issue: | Unsecured convertible note
|
| Amount: | $10 million
|
| Maturity: | February 2013
|
| Coupon: | 7.5%
|
| Price: | Par
|
| Yield: | 7.5%
|
| Conversion price: | $0.02
|
| Warrants: | For 500 million shares minus amount shares into which note is convertible
|
| Investor: | E-Wilson LLC
|
| Pricing date: | Jan. 23
|
| Settlement date: | Feb. 1
|
| Stock symbol: | OTCBB: MMCV
|
| Stock price: | $0.011 at close Jan. 22
|
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