By Devika Patel
Knoxville, Tenn., July 22 - Espre Solutions, Inc. took in $2 million from a private placement of a 6% senior convertible debenture on July 16, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The company received $250,000 at closing, with the balance paid in the form of a promissory note due Jan. 30, 2011.
The debenture is convertible into common shares with a conversion price equal to the lesser of $0.65 or 82% of the three lowest volume weighted average prices during the 20 trading days prior to the conversion date.
If the volume weighted average price per share is less than $0.10 on the conversion date, the company may prepay the amount to be converted, plus interest, at 115% of the amount.
Interest is payable monthly on the 15th day of each month. The note matures on Jan. 30, 2011.
The investor has agreed to buy a second debenture on the same terms as above.
Espre Solutions is a Dallas-based video media solutions and technology company.
| Issuer: | Espre Solutions, Inc.
|
| Issue: | Senior convertible debentures
|
| Amount: | $4 million
|
| Maturity: | Jan. 30, 2011
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | Lesser of $0.65 or 82% of the three lowest volume weighted average prices during the 20 trading days prior to the conversion date
|
| Warrants: | No
|
| Settlement date: | July 16 (for $2 million)
|
| Stock symbol: | OTCBB: EPRT
|
| Stock price: | $0.12 at close July 16
|
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