Convertibles deal also offers five-year warrants, exercisable at $1.00
By Devika Patel
Knoxville, Tenn., Jan. 5 - Forgehouse, Inc. arranged a private placement of senior secured convertible promissory notes with United American Petroleum Corp. on Dec. 31, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal will raise $2.25 million and has already taken in $620,000.
The 10% notes will be initially convertible at $0.50 per share and are due Dec. 31, 2013.
In addition, the investors received five-year warrants, which are exercisable at $1.00.
The conversion price and strike price are 78.57% and 257.14% premiums to the Dec. 30 closing share price of $0.28.
Forgehouse is an enterprise application software solutions and services company based in Los Angeles.
| Issuer: | Forgehouse, Inc.
|
| Issue: | Senior secured convertible promissory notes
|
| Amount: | $2.25 million
|
| Maturity: | Dec. 31, 2013
|
| Coupon: | 10%
|
| Conversion price: | $0.50
|
| Warrants: | Yes
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.00
|
| Investor: | United American Petroleum Corp.
|
| Settlement date: | Dec. 31 (for $620,000)
|
| Stock symbol: | OTCBB: FOHE
|
| Stock price: | $0.28 at close Dec. 31
|
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