Published on 4/8/2008 in the Prospect News PIPE Daily.
New Issue: FLO secures $1.6 million from sale of convertible notes, warrants
By Devika Patel
Knoxville, Tenn., April 8 - FLO Corp. arranged a $1.6 million private placement of secured convertible notes and warrants on April 3, according to an 8-K filing with the Securities and Exchange Commission.
The notes have a 12% coupon and will mature April 3, 2010. Interest on the notes is payable quarterly beginning on July 1 in cash or notes, at the company's option. They are convertible into common shares at any time with an initial conversion price of $1.00 and will automatically convert at the applicable rate if the company's shares close at $3.00 or higher for 20 consecutive trading days.
Investors also will receive warrants for 1,590,511 shares, which are exercisable at $0.75 for five years, and warrants for 1,590,511 shares, which are exercisable at $0.60 for the earlier of five years or nine months after the a registration statement covering the resale of the underlying shares is declared effective by the SEC.
Chantilly, Va.-based FLO has developed the Registered Traveler program, which is administered by the U.S. Transportation Security Administration. The program is designed to identify air passengers who pose a minimal security risk and provide those passengers with access to faster and simpler processing at airport security checkpoints.
| Issuer: | FLO Corp.
|
| Issue: | Secured convertible notes, warrants
|
| Amount: | $1.6 million
|
| Maturity: | April 3, 2010
|
| Coupon: | 12%, payable quarterly beginning July 1 in cash or additional notes
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $1.00
|
| Warrants: | For 3,181,022 shares
|
| Warrant expiration: | Five years (for 1,590,511 shares), the earlier of five years or nine months after the a registration statement covering the resale of the underlying shares is declared effective (for 1,590,511 shares)
|
| Warrant strike price: | $0.75 (for 1,590,511 shares), $0.60 (for 1,590,511 shares)
|
| Pricing date: | April 3
|
| Stock symbol: | OTCBB: FLRP
|
| Stock price: | $0.81 at close April 3
|
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