By Sheri Kasprzak
Atlanta, March 31 - IBSG International Inc. revealed the details of its $1 million private placement.
The company sold senior secured convertible notes to four accredited investors.
The notes bear interest at 7% annually, mature in one year and are convertible into common shares at $0.29 each. If the company's revenues for fiscal year 2004 were not at least $5 million and the revenues for the first quarter for fiscal year 2005 are not at least $2 million, the conversion price will be reduced by a third.
The company may force conversion of the notes if a registration statement is effective and the company's closing bid price is above $0.60.
The investors will also receive class A warrants for 3,225,807 shares, exercisable at $0.312 each for five years, and class B warrants for 322,581 shares, exercisable at $0.26 each for 180 days after the registration statement is declared effective.
Based in Celebration, Fla., IBSG is a digital software company.
| Issuer: | IBSG International Inc.
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| Issue: | Senior secured convertible notes
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| Amount: | $1 million
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| Maturity: | One year
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| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Conversion price: | $0.29
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| Call: | May force conversion if closing bid price exceeds $0.60
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| Warrants: | Class A warrants for 3,225,807 shares and class B warrants for 322,581 shares
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| Warrant expiration: | Five years for class A; 180 days after registration statement is effect for class B
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| Warrant strike price: | $0.312 for class A; $0.26 for class B
|
| Settlement date: | March 17
|
| Stock price: | $0.29 at close March 17
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