By Sheri Kasprzak
New York, May 19 - Execute Sports, Inc. received a $10 million equity line from Dutchess Private Equities Fund II, LP and also raised $1.9 million from a private placement of 12% convertible debentures.
Under the terms of the three-year equity line, Dutchess may buy shares of Execute's stock at 93% of the lowest closing stock for the five trading days before a draw.
The debentures were also purchased by Dutchess Private Equities Fund.
The first $950,000 was funded at closing, and the rest will be funded once a registration statement is filed with the Securities and Exchange Commission.
The five-year debentures are convertible into common shares at $0.15 each.
The debentures are due May 15, 2011.
Dutchess received warrants for 3,166,666 shares, exercisable for five years at $0.15 each connected to the debentures.
Located in San Clemente, Calif., Execute brands clothing and apparel for the motor sport sector.
Equity line
| Issuer: | Execute Sports, Inc.
|
| Issue: | Equity line
|
| Amount: | $10 million
|
| Tenor: | Three years
|
| Price: | 93% of the lowest closing stock price for the five trading days before a draw
|
| Warrants: | No
|
| Investor: | Dutchess Private Equities Fund II, LP
|
| Settlement date: | May 15
|
| Stock symbol: | OTCBB: EXCS
|
| Stock price: | $0.39 at close May 15
|
|
|
| Convertible debentures
|
| Issuer: | Execute Sports, Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $1.9 million
|
| Maturity: | May 15, 2011
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | $0.15
|
| Warrants: | For 3,166,666 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.15
|
| Investor: | Dutchess Private Equities Fund II, LP
|
| Settlement date: | May 15
|
| Stock symbol: | OTCBB: EXCS
|
| Stock price: | $0.39 at close May 15
|
|
|
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