Hypertension Diagnostics plans $3 million sale of 16.5% convertibles

Convertible promissory note due 2013 purchased by TCA Global Credit

By Devika Patel

Knoxville, Tenn., Oct. 16 - Hypertension Diagnostics, Inc. arranged to sell up to $3 million of revolving convertible promissory notes to TCA Global Credit Master Fund, LP on Oct. 10, according to an 8-K filed Wednesday with the Securities and Exchange Commission. It has already raised $550,000.

The 16.5% note is due April 10, 2014 and may be converted into common shares at a conversion price equal to 85% of the lowest daily volume-weighted average price of the stock during the five trading days immediately preceding the conversion date.

TCA also received 4,494,751 shares and three warrants for 15,673,314 shares. The warrants are each exercisable at $1.00 for six months, nine months and one year.

Hypertension Diagnostics is an Eagan, Minn., maker of blood pressure waveform analysis equipment.

Issuer:	Hypertension Diagnostics, Inc.
Issue:	Revolving convertible promissory note, 4,494,751 shares
Amount:	$3 million
Maturity:	April 10, 2014
Coupon:	16.5%
Conversion price:	85% of the lowest daily volume-weighted average price of the stock during the five trading days immediately preceding the conversion date
Warrants:	For 15,673,314 shares
Warrant expiration:	Six months, nine months and one year
Warrant strike price:	$1.00
Investor:	TCA Global Credit Master Fund, LP
Pricing date:	Oct. 10
Settlement date:	Oct. 10 (for $550,000)
Stock symbol:	OTCBB: HDII
Stock price:	$0.02 at close Oct. 9

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