By Devika Patel
Knoxville, Tenn., April 15 - Innovative Card Technologies, Inc. settled a $5 million private placement of a senior secured convertible debenture on April 15 with EMC Corp., according to an 8-K filed Wednesday with the Securities and Exchange Commission.
The note has an 8% coupon, which will be paid quarterly in cash or, if certain conditions are met, common stock, and is convertible at $2.48 per share. It has a forced conversion feature that will go into effect if Innovative Card's stock trades above $5.00 for 20 consecutive trading days.
It matures on April 15, 2011.
Along with the note, EMC also received five-year warrants to buy 1,008,064 shares at $2.728 per share.
T.R. Winston & Co., LLC was the agent.
Proceeds will be used as working capital and to pay down certain obligations.
Based in Los Angeles, Innovative Card develops and markets secure powered cards for payment, identification, physical and logical access applications.
| Issuer: | Innovative Card Technologies, Inc.
|
| Issue: | Senior secured convertible debenture
|
| Amount: | $5 million
|
| Maturity: | April 15, 2011
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $2.48
|
| Warrants: | For 1,008,064 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.728
|
| Agent: | T.R. Winston & Co., LLC
|
| Investor: | EMC Corp.
|
| Settlement date: | April 15
|
| Stock symbol: | Nasdaq: INVC
|
| Stock price: | $2.52 at close April 15
|
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