Published on 5/2/2008 in the Prospect News PIPE Daily.
New Issue: FLO sells $5.5 million more of convertible notes, warrants
By Devika Patel
Knoxville, Tenn., May 2 - FLO Corp. said it will sell $5.5 million more of secured convertible notes. It conducted a $1.6 million private placement of the notes and warrants on April 3, as previously reported. The total amount of the deal is now $7.1 million.
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 $0.80, unlike the earlier notes, which had a 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.
FLO also plans to issue warrants for 125,000 common shares, which are exercisable at $0.75, and short-term warrants for 100,000 shares, exercisable at $0.60, for every $100,000 invested.
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: | $7.1 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 (for $1.6 million), $0.80 (for $5.5 million)
|
| Warrants: | For 225,000 shares per $100,000 invested
|
| Warrant strike price: | $0.75 (for 125,000 shares per $100,000 invested), $0.60 (for 100,000 shares per $100,000 invested)
|
| Pricing date: | April 3
|
| Settlement date: | April 3 (for $1.6 million), May 2 (for $5.5 million)
|
| Stock symbol: | OTCBB: FLRP
|
| Stock price: | $0.81 at close April 3
|
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