By Sheri Kasprzak
New York, Oct. 3 - Inksure Technologies Inc. said it has closed a $6 million private placement of convertible notes.
The notes were purchased by Smithfield Fiduciary, LLC; The Irrevocable Trust of James. E. Lineberger; Iroquois Master Fund, Ltd.; and Omicron Master Trust.
The 4% interest-only notes mature on Sept. 30, 2010 and are initially convertible into a total of 2 million common shares at $3.00 each.
The notes are redeemable at 125% of face value plus interest under certain circumstances of merger while the notes are still outstanding.
Inksure may force conversion of the notes if its stock trades above $6.50 for any 20 trading days in any 30 consecutive trading-day period after Sept. 30, 2006 or above $5.50 for any 20 trading days in any 30 consecutive trading-day period after Sept. 30, 2007.
The investors also have the option to buy an additional $1.25 million in principal of notes at a conversion price of $3.60 each.
Jefferies & Co. was the placement agent.
Based in Fort Lauderdale, Fla., Inksure develops security technologies used to detect counterfeit items.
| Issuer: | Inksure Technologies Inc.
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| Issue: | Convertible notes
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| Amount: | $6 million
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| Maturity: | Sept. 30, 2010
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| Coupon: | 4%
|
| Price: | Par
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| Yield: | 4%
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| Conversion price: | $3.00
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| Conversion ratio: | Into 2 million shares
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| Call: | May force conversion if stock trades above $6.50 for any 20 trading days in any 30 consecutive trading days after Sept. 30, 2006; may force conversion if stock trades above $5.50 for any 20 trading days in any 30 consecutive trading days after Sept. 30, 2007; may redeem notes at 125% of face value plus interest under certain merger circumstances
|
| Investors: | Smithfield Fiduciary, LLC; The Irrevocable Trust of James. E. Lineberger; Iroquois Master Fund, Ltd.; and Omicron Master Trust
|
| Placement agent: | Jefferies & Co.
|
| Settlement date: | Sept. 30
|
| Stock price: | $3.87 at close Sept. 30
|
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