By LLuvia Mares
New York, Aug. 30 - Fonix Corp. announced Thursday a $2.4 mililon offering of series N 9% convertible preferred stock.
The company will sell 2,400 shares of preferred stock at $1,000 per share to various investors including lead investor Trillium Partners, LP.
The stock is convertible into shares of the company's class A common stock at a conversion price of 80% of the two lowest closing bid prices over the 20 trading days prior to the conversion date.
In addition to the sale the company also signed a settlement agreement resolving litigation with the Breckenridge Fund, LLC Thursday.
The company paid Breckenridge $343,000 and will pay an additional $250,000 on Sept. 7 and $707,000 on Nov. 27.
Salt Lake City, Utah-based Fonix specializes in speech recognition and text-to-speech technologies.
Issuer: Fonix Corp.
Issue: Convertible preferred stock
| Amount: | $2,400,000
|
| Shares: | 2,400
|
| Dividend: | 9%
|
| Price: | $1,000
|
| Conversion price: | 80% of the two lowest closing bid prices
|
| Warrants: | No
|
| Investor: | Trillium Partners, LP (lead investor)
|
| Agent: | Non-brokered
|
| Announcement date: | Aug. 30
|
| Stock symbol: | OTCBB: FNIX
|
| Stock price: | $0.70 at close Aug. 29
|
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