Investors also receive warrants for 11.92 million shares of stock
By Angela McDaniels
Tacoma, Wash., Aug. 22 - Lenco Mobile Inc. raised $3.99 million via a private placement of 12% senior secured promissory notes that priced July 30.
The company settled $2,224,278 of notes on July 31, $889,911 on Aug. 3 and $874,913 on Aug. 21, according to 8-K filings with the Securities and Exchange Commission.
Each tranche of notes matures two years after issuance.
The notes are prepayable at any time without premium or penalty.
The notes are secured by a first-priority security interest in substantially all of the company's and its wholly owned subsidiaries' property and rights in and to property.
Among the purchasers were chief executive officer Matthew Harris, chief technology officer Srinivas Kandikattu, chief financial officer Chris Dukelow, general manager of the Americas Robert Chiumento, executive chairman Michael Levinsohn and director James Liang.
The purchasers also bought five-year warrants for 11,919,000 shares of common stock. The exercise price is $0.10 per share, which is a 16.7% discount to the company's $0.12 closing share price on July 27. The price for the warrants was 0.01% of the purchase price of the notes.
Proceeds will be used to repay outstanding debt and for general corporate purposes.
Lenco Mobil is based in Seattle. It provides mobile messaging and mobile Web solutions.
| Issuer: | Lenco Mobile Inc.
|
| Issue: | Senior secured promissory notes
|
| Amount: | $3,989,102
|
| Maturity: | 2014
|
| Coupon: | 12%
|
| Price: | Par
|
| Call option: | At par at any time
|
| Warrants: | For 11,919,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.10
|
| Agent: | Non-brokered
|
| Investors: | CEO Matthew Harris, CTO Srinivas Kandikattu, CFO Chris Dukelow, general manager of the Americas Robert Chiumento, executive chairman Michael Levinsohn and director James Liang, among others
|
| Pricing date: | July 30
|
| Settlement dates: | July 31 (for $2,224,278), Aug. 3 ($889,911), Aug. 21 (for $874,913)
|
| Stock symbol: | OTCBB: LNCM
|
| Stock price: | $0.12 at close July 27
|
| Market capitalization: | $8.16 million
|
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