8% notes due 2014, three-year warrants sold through agent GVC Capital
By Devika Patel
Knoxville, Tenn., April 25 - Las Vegas Railway Express, Inc. gave further details about a $2.38 million private placement of unsecured convertible notes in an 8-K filed Thursday with the Securities and Exchange Commission. GVC Capital LLC was the agent for the deal, which was announced on Wednesday and settled from Feb. 8 to April 24.
The 8% note is due on Feb. 1, 2014 and is convertible into common shares at $0.05 per share, which is a 58.33% discount to the Feb. 7 closing share price of $0.12.
Investors also received warrants for 47.6 million shares. The warrants are each initially exercisable for three years at $0.10, which is a 16.67% discount to the Feb. 7 closing share price.
Proceeds will be used to develop the company's first prototype passenger car, along with station site development costs and engineering, as well as general operating expenses.
The Las Vegas-based company is focused on re-establishing a rail passenger train service between Las Vegas and Los Angeles.
| Issuer: | Las Vegas Railway Express, Inc.
|
| Issue: | Unsecured convertible note
|
| Amount: | $2.38 million
|
| Maturity: | Feb. 1, 2014
|
| Coupon: | 8%
|
| Conversion price: | $0.05
|
| Warrants: | For 47.6 million shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.10
|
| Agent: | GVC Capital LLC
|
| Settlement date: | From Feb. 8 to April 24
|
| Stock symbol: | OTCBB: XTRN
|
| Stock price: | $0.12 at close Feb. 7
|
| Market capitalization: | $15.14 million
|
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