Kodiak Capital to buy shares to finance general corporate purposes
By Toni Weeks
San Diego, Jan. 7 - Eastgate Acquisitions Corp. arranged a $15 million equity line with Kodiak Capital Group, LLC on Dec. 31, according to an 8-K filed with the Securities and Exchange Commission on Monday.
Under the agreement, the company may sell to Kodiak common shares over a one-year period.
The stock will be sold at a price equal to the lowest daily volume-weighted average price of the company's common stock during the five trading dates following the put notice. The company also has the option to specify a floor price for any put notice.
The investor also received a fee of 750,000 shares.
The company intends to have its common stock listed on the Over-the-Counter Bulletin Board.
Proceeds will be used for general corporate and working capital purposes as well as for the development of products, formulas, processes, proprietary technology and/or patents and patent applications related to pharmaceutical, nutraceutical, food supplements and consumer health products.
Salt Lake City-based Eastgate is engaged in developing self-emulsifying drug delivery systems.
| Issuer: | Eastgate Acquisitions Corp.
|
| Issue: | Equity line consisting of common shares
|
| Amount: | $15 million
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| Price: | Lowest daily volume-weighted average price of the company's common stock during the five trading dates following put notice, with option to specify a floor price for any put notice.
|
| Maturity: | One year
|
| Warrants: | No
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| Investor: | Kodiak Capital Group, LLC
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| Settlement date: | Dec. 31
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