One-year debt sold to investor Coventry; notes may be prepaid at 150
By Devika Patel
Knoxville, Tenn., March 6 – iHookup Social, Inc. sold two convertible notes of $37,500 each in a private placement with Coventry Enterprises, LLC on Feb. 27, according to an 8-K filed Thursday with the Securities and Exchange Commission. Of the proceeds, half was paid in cash and half by an offsetting $37,500 promissory note.
The 8% notes are due in one year and are convertible into common shares at a price equal to 50% of the lowest closing bid price of the stock for the 20 trading days preceding conversion. The notes may be prepaid at 150.
Coventry also received warrants for 7 million shares, which are each exercisable at $0.05 for five years. The strike price is a 16.67% discount to the March 5 closing share price of $0.06.
The mobile social media platform is based in Campbell, Calif.
| Issuer: | iHookup Social, Inc.
|
| Issue: | Convertible note
|
| Amount: | $75,000
|
| Maturity: | One year
|
| Coupon: | 8%
|
| Conversion price: | 50% of the lowest closing bid price of the stock for the 20 trading days preceding conversion
|
| Call: | At 150
|
| Warrants: | For 7 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.05
|
| Investor: | Coventry Enterprises, LLC
|
| Fees: | $2,000
|
| Announcement date: | March 6
|
| Settlement date: | Feb. 27
|
| Stock symbol: | OTCBB: HKUP
|
| Stock price: | $0.06 at close on March 5
|
| Market capitalization: | $38,970
|
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