By Sheri Kasprzak
Atlanta, June 16 - Innova Holdings Inc. said it has received a standby equity distribution agreement from Cornell Capital Partners LP for up to $10 million.
Under the terms of the agreement, Innova may sell shares to Cornell at a price equal to 96% of the lowest volume weighted average bid price of its stock during the five trading days after notice of a draw.
The term of the agreement is two years, and Cornell will retain 5% of each advance.
There is a ceiling of $400,000 for each draw.
Cornell also received a commitment fee of 2,608,696 restricted shares of Innova's common stock.
Monitor Capital Inc. was the placement agent for the equity line.
Innova also sold a promissory note to Cornell for $300,000, payable in three $100,000 installments. The note does not bear interest except in the case of a default.
Based in Fort Myers Beach, Fla., Innova is a holding company for a software development company and a robotics development company.
| Issuer: | Innova Holdings Inc.
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| Issue: | Standby equity distribution agreement
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| Amount: | $10 million
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| Price: | 96% of lowest volume weighted average price five trading days after notice of a draw
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| Tenor: | Two years
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| Warrants: | No
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| Investor: | Cornell Capital Partners LP
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| Placement agent: | Monitor Capital Inc.
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| Settlement date: | June 14
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| Stock price: | $0.06 at close June 14
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