Company sells two-year discounted notes at a 10% discount in offering
By Devika Patel
Knoxville, Tenn., July 25 – VeriTeQ Corp. arranged a private placement of $500,000 convertible notes on July 16, according to an 8-K filed Friday with the Securities and Exchange Commission. The notes will be sold at a 10% discount, and the company has already raised $125,000.
The note matures in two years and is convertible into common stock at the lesser of $0.14 or 60% of the lowest trade price in the 25 trading days preceding conversion.
The note will accrue interest through a one-time payment of 12% after 90 days.
The Delray Beach, Fla., company develops mobile games.
| Issuer: | VeriTeQ Corp.
|
| Issue: | Convertible note
|
| Amount: | $500,000
|
| Maturity: | Two years
|
| Price: | 10% discount
|
| Coupon: | One-time payment of 12% after 90 days
|
| Conversion price: | The lesser of $0.14 or 60% of the lowest trade price in the 25 trading days preceding conversion
|
| Warrants: | No
|
| Pricing date: | July 16
|
| Settlement date: | July 16 (for $125,000)
|
| Stock symbol: | OTCBB: VTEQ
|
| Stock price: | $0.06 at close July 15
|
| Market capitalization: | $483,880
|
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