By Devika Patel
Knoxville, Tenn., Feb. 21 - Helix BioMedix, Inc. negotiated a $3 million private placement of a convertible promissory note with RBFSC, Inc. on Feb. 14, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The note matures Feb. 14, 2010 and carries a coupon of 8%, which will be payable upon maturity, conversion or default. It is convertible at any time after June 29 into common shares at a price equal to 80% of the average closing price of the company's common stock during the 90 days prior to conversion. If the company completes an equity financing of $5 million or more before June 29, the note will be converted automatically.
If the company does not complete an equity financing by June 29, RBFSC will receive a warrant for a number of shares equal to 20% of the note's principal divided by the closing price of the company's common stock on the date the warrant is issued. The warrant will have an exercise price equal to the closing price of the stock on the issue date.
Based in Bothell, Wash., Helix develops bioactive peptides used in skin care products.
| Issuer: | Helix BioMedix, Inc.
|
| Issue: | Convertible promissory note, convertible into common shares, warrant
|
| Amount: | $3 million
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| Maturity: | Feb. 14, 2010
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
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| Conversion price: | 80% of the average closing price of the company's common stock during the 90 days prior to conversion
|
| Warrants: | For 20%
|
| Warrant strike price: | Closing price of the company's common stock on the issue date
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| Investor: | RBFSC, Inc.
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| Settlement date: | Feb. 14
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| Stock symbol: | OTCBB: HXBM
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| Stock price: | $0.80 at close Feb. 14
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