By Sheri Kasprzak
Atlanta, April 6 - U.S. Medsys Corp. said it has closed a private placement for $1.5 million.
The company sold 150,000 shares of series A convertible preferred stock at $10.00 each to two individual investors, Joseph Corso Sr. and Joseph Corso Jr.
Each preferred is convertible into 20 common shares. The preferreds do not pay dividends.
The company may force conversion of the preferreds if its stock trades above $3.00 per share for 20 consecutive trading days.
The investors also received warrants for a total of 1 million shares exercisable at $1.50 for three years. The warrants may be redeemed at $0.01 per warrant if the company's stock exceeds $3.00 for 20 consecutive trading days. The expiry will be accelerated to 30 days if this occurs.
Based in Hasbrouck Heights, N.J., U.S. Medsys manufactures and markets medical devices.
Issuer: | U.S. Medsys Corp.
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Issue: | Series A convertible preferred stock
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Amount: | $1.5 million
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Shares: | 150,000
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Price: | $10.00
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Conversion ratio: | Each preferred into 20 common shares
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Warrants: | For 1 million shares
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Warrant expiration: | Three years
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Warrant strike price: | $1.50
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Investors: | Joseph Corso Sr. and Joseph Corso Jr.
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Settlement date: | March 31
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Stock price: | $0.92 at close March 31
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