Viscount Systems sells $330,000 discounted convertibles for $300,000

Company sells 8% senior secured convertibles that are due on demand

By Devika Patel

Knoxville, Tenn., Dec. 1 – Viscount Systems, Inc. settled a private placement of $330,000 original issue discount senior secured convertible demand promissory B notes with an original issue discount of $30,000 on Nov. 24, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal raised $300,000.

The 8% notes are due on demand and will initially convert to common shares at 60% of the lowest bid price or lowest sale price of the stock during the 20 consecutive trading days preceding conversion.

Investors also received $2,172,978 senior secured convertible demand promissory A notes with substantially the same terms.

Based in Burnaby, B.C., Viscount is a manufacturer, developer and service provider of access control security products.

Issuer:	Viscount Systems, Inc.
Issue:	Senior secured convertible demand promissory B notes, senior secured convertible demand promissory A notes
Amount:	$330,000 (B notes), $2,172,978 (A notes)
Maturity:	On demand
Price:	$300,000 (original issue discount of $30,000)
Coupon:	8%
Conversion price:	60% of the lowest bid price or lowest sale price of the stock during the 20 consecutive trading days preceding conversion
Warrants:	No
Settlement date:	Nov. 24
Stock symbol:	OTCBB: VSYS
Stock price:	$0.02 at close Nov. 23
Market capitalization:	$1.96 million

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