Senior convertible notes sold for $1.75 million and due May 23, 2013
By Devika Patel
Knoxville, Tenn., Nov. 23 - Iceweb, Inc. sold $2.01 million of senior convertible notes for $1.75 million in a private placement on Nov. 23, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The deal was conducted by agent Rodman & Renshaw, LLC.
The notes have an original issue discount of 13% and mature on May 23, 2013. They are convertible into common stock at $0.17 per share, which is a 21.43% premium to the Nov. 22 closing share price of $0.14. The company may redeem the notes under certain circumstances.
The investors also received warrants for 35,514,708 common shares, each of which is exercisable at $0.17. The strike price is also a 21.43% premium to the Nov. 22 closing price. The five-year series O warrants and one-year series P warrants are each immediately exercisable, and the five-year series Q warrants become exercisable after the series P warrants are first exercised.
Proceeds will be used for general working capital.
Based in Herndon, Va., Iceweb creates and hosts online training programs.
| Issuer: | Iceweb, Inc.
|
| Issue: | Senior convertible notes
|
| Amount: | $2,012,500
|
| Maturity: | May 23, 2013
|
| Price: | $1.75 million (13% original issue discount)
|
| Conversion price: | $0.17
|
| Call: | Yes
|
| Warrants: | For 35,514,708 shares
|
| Warrant expiration: | Five years (series O and series Q), one year (series P)
|
| Warrant strike price: | $0.17
|
| Agent: | Rodman & Renshaw, LLC
|
| Settlement date: | Nov. 23
|
| Stock symbol: | OTCBB: IWEB
|
| Stock price: | $0.14 at close Nov. 23
|
| Market capitalization: | $20.66 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
