Units include two-year warrants; 1% promissory note converts at $0.15
By Devika Patel
Knoxville, Tenn., Nov. 17 – 5BARz International Corp. completed a $3.45 million private placement of units between March 6, 2014 and Oct. 10, according to a 10-Q filed Monday with the Securities and Exchange Commission. It also sold a $1.5 million convertible promissory note on Oct. 15.
The company sold 23,030,298 units of one common share and one warrant at $0.15 per unit.
Each two-year unit warrant is exercisable at $0.30. The strike price is a 36.36% premium to the March 5 closing share price of $0.22.
The 1% note converts to common stock at $0.15 per share, which is a 16.67% discount to the Oct. 14 closing share price of $0.18.
The convertible investors also received 100% warrant coverage. Each warrant is exercisable at $0.20 for five years. The strike price is an 11.11% premium to the Oct. 14 closing share price.
Proceeds will be used for working capital.
The San Diego-based company is the exclusive worldwide distributor of 5BARz Cellular Network Extender products developed by Cellynx.
| Issuer: | 5BARz International Corp.
|
| Issue: | Units of one common share and one warrant, convertible promissory note
|
| Amount: | $4,954,545
|
| Stock symbol: | OTCBB: BARZ
|
| Market capitalization: | $22.29 million
|
|
|
| Units
|
| Amount: | $3,454,545
|
| Units: | 23,030,298
|
| Price: | $0.15
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | $0.30
|
| Settlement date: | March 6, 2014 to Nov. 14
|
| Stock price: | $0.22 at close March 5
|
|
|
| Note
|
| Amount: | $1.5 million
|
| Coupon: | 1%
|
| Conversion price: | $0.15
|
| Warrants: | 100% coverage
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.20
|
| Settlement date: | Oct. 15
|
| Stock price: | $0.18 at close Oct. 14
|
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