By Laura Lutz
Des Moines, Feb. 1 - IDO Security Inc. raised $5.4 million from private placements of convertibles between Dec. 5 and Jan. 24, according to an 8-K filing with the Securities and Exchange Commission.
The secured convertible promissory notes mature in two years and bear interest at 10% per year. They are convertible into common stock at $1.00 per share.
IDO will be required to make monthly principal payments equal to 5% of the principal amount, beginning four months after issuance.
The investors also received warrants for 5,404,550 shares. Half of the warrants have a strike price of $2.00, and half have a strike price of $3.00.
Some of the proceeds were used to repay bridge loans that came due in November. The rest will be used for general corporate purposes.
All of the holders of those bridge notes, as well as other bridge notes that came due in January, participated in the placement.
New York-based IDO develops technologies to detect metallic objects in footwear, ankles and feet.
| Issuer: | IDO Security Inc.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $5,404,550
|
| Maturity: | Two years
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | $1.00
|
| Warrants: | For 5,404,550 shares
|
| Warrant strike price: | $2.00 for half; $3.00 for half
|
| Pricing date: | Dec. 5
|
| Final settlement date: | Jan. 24
|
| Stock symbol: | OTC: IDOI
|
| Stock price: | $2.05 at close Dec. 5
|
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