Inergetics cuts $1.5 million convertible promissory notes to $1 million

12% secured subordinated convertibles were sold to 31 Group on July 14

By Devika Patel

Knoxville, Tenn., Oct. 17 – Inergetics Inc. amended the terms of its $1.5 million 12% secured subordinated convertible promissory notes on Oct. 16, according to an 8-K filed Friday with the Securities and Exchange Commission. The notes were sold to 31 Group, LLC on July 14.

The company reduced the notes’ principal to $1 million and inserted a mandatory prepayment feature.

Under the new mandatory prepayment feature, if the volume-weighted average price of the company’s common stock is equal to or less than the floor conversion price, $0.031 per share, on any trading day, the company must prepay the note at 140 plus unpaid interest within 10 days. If the prepayment is not made within 10 days, the floor price must be removed.

On Sept. 29, a prepayment event occurred and the company was not able to make the payment. As a result, the floor price was removed.

The conversion price is the lesser of $0.35 per share and 62% of the lowest trading price of the stock during the 10 trading days preceding conversion.

Based in Paramus, N.J., the company makes specialized nutritional supplements.

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