By Sheri Kasprzak
New York, July 22 - Vasomedical Inc. released the details of its previously announced $2.5 million private placement of series D convertible preferred stock.
Monarch Pointe Fund Ltd., Mercator Momentum Fund LP and Mercator Momentum Fund III LP - all managed by M.A.G. Capital LLC - bought 25,000 preferreds at $100 each.
The preferreds are convertible into common shares at 85% of the volume weighted average price for five trading days before conversion. There is a $0.6606 ceiling and a $0.40 floor on the conversion price.
Vasomedical may force conversion of the preferreds if its closing stock price is above $1.30 for more than 20 consecutive trading days.
The preferreds pay monthly cash dividends at Prime plus 300 basis points, with a minimum of 8.5% and maximum of 10%.
The investors also received warrants for 1,892,219 shares, exercisable at $0.69 each through July 19, 2010.
Wharton Capital Partners was the placement agent.
Based in Westbury, N.Y., Vasomedical designs noninvasive treatments for cardiovascular dysfunctions. The proceeds will be used for working capital.
| Issuer: | Vasomedical, Inc.
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| Issue: | Series D convertible preferred stock
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| Amount: | $2.5 million
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| Shares: | 25,000
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| Price: | $100
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| Dividends: | Prime plus 300 basis points, floor of 8.5% , ceiling of 10%
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| Conversion price: | 85% of the volume weighted average price for five trading days before conversion, $0.6606 ceiling, $0.40 floor
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| Warrants: | For 1,892,219 shares
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| Warrant expiration: | July 19, 2010
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| Warrant strike price: | $0.69
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| Placement agent: | Wharton Capital Partners
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| Investors: | Monarch Pointe Fund Ltd., Mercator Momentum Fund LP and Mercator Momentum Fund III LP
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| Settlement date: | July 19
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| Stock price: | $0.70 at close July 19
|
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