Promissory notes sold to three investors through offering
By Devika Patel
Knoxville, Tenn., March 25– VeriTeQ Corp. sold $194,000 of convertible promissory notes to three investors for $171,000, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The company sold two 8% convertible promissory notes of $25,000 each to one investor on March 20, with $4,000 of fees for $46,000 overall. It sold $77,500 of notes to Magna Equities II, LLC on March 19, with $2,500 of fees, and $66,500 of notes to Vis Vires Group, Inc. for $50,000 on March 16, with $4,000 of fees.
The first 8% notes of $25,000 each are due on March 19, 2016 and may be converted into common shares at a conversion price equal to the lesser of $0.015 or 60% of the average of the lowest three trading prices of the stock during the 10 trading days preceding conversion. The note may be redeemed at 150.
The second 12% Magna note is due on March 17, 2016 and may be converted into common shares at a conversion price equal to 61% of the lowest closing price of the common stock for the 15 trading days preceding the conversion notice. The note may be redeemed at 150.
The third 1% note is due on March 19, 2016 and may be converted into common shares at a conversion price equal to 61% of the lowest closing price of the common stock for the 15 trading days preceding the conversion notice. The note may be redeemed at 150.
Vis Vires also received warrants for 500,000 shares. The warrants are each exercisable at $0.021 for three years. The strike price is a 110% premium to the March 13 closing share price of $0.01
Proceeds will be used for general corporate purposes.
The Delray Beach, Fla., company develops mobile games.
| Issuer: | VeriTeQ Corp.
|
| Issue: | Convertible promissory note
|
| Amount: | $194,000
|
| Price: | $171,000
|
| Stock symbol: | OTCBB: VTEQ
|
| Market capitalization: | $5,192
|
|
|
| First note
|
| Amount: | $50,000 (two notes of $25,000 each)
|
| Price: | $46,000
|
| Maturity: | March 19, 2016
|
| Coupon: | 8%
|
| Conversion price: | 61% of the lowest closing price of the common stock for the 15 trading days preceding the conversion notice
|
| Call: | At 150
|
| Warrants: | No
|
| Fees: | $4,000
|
| Settlement date: | March 20
|
| Stock price: | $0.01 at close on March 19
|
|
|
| Second note
|
| Amount: | $77,500
|
| Maturity: | March 17, 2016
|
| Price: | $75,000
|
| Coupon: | 12%
|
| Conversion price: | The lesser of $0.015 or 60% of the average of the lowest three trading prices of the stock during the 10 trading days preceding conversion
|
| Call: | At 150
|
| Warrants: | No
|
| Investor: | Magna Equities II, LLC
|
| Fees: | $2,500
|
| Settlement date: | March 19
|
| Stock price: | $0.01 at close on March 18
|
|
|
| Third note
|
| Amount: | $66,500
|
| Maturity: | March 19, 2016
|
| Price: | $50,000
|
| Coupon: | 1%
|
| Conversion price: | 60% of the average of the lowest three trading prices of the stock during the 10 trading days preceding conversion
|
| Call: | At 150
|
| Warrants: | For 500,000 shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.021
|
| Investor: | Vis Vires Group, Inc.
|
| Fees: | $4,000
|
| Settlement date: | March 16
|
| Stock price: | $0.01 at close on March 13
|
|
|
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