Investors receive five-year warrants for 18.75 million common shares
By Devika Patel
Knoxville, Tenn., July 2 - Liquidmetal Technologies, Inc. settled a $12 million private placement of 8% senior convertible promissory notes on July 2, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The notes mature on Sept. 15, 2013 and are initially convertible into common shares at $0.352 per share, which represents a 10% premium to the $0.32 closing share price on June 30. The notes may be put upon a change of control.
The company must repay 1/12th of the notes on the first business day of each month from Oct. 1 through Sept. 1, 2013. Each monthly payment may be made in cash, shares of common stock or a combination of cash and shares.
The investors also received five-year warrants for 18.75 million common shares, which are each exercisable at $0.384, a 20% premium to the June 30 closing price.
Proceeds will be used for general corporate purposes and to repay the $1.8 million promissory note owed to Saga SPA.
Based in Lake Forest, Calif., Liquidmetal makes industrial coatings from amorphous alloys.
| Issuer: | Liquidmetal Technologies, Inc.
|
| Issue: | Senior convertible promissory notes
|
| Amount: | $12 million
|
| Maturity: | Sept. 15, 2013
|
| Coupon: | 8%
|
| Conversion price: | $0.352
|
| Put option: | Upon a change of control
|
| Warrants: | For 18.75 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.384
|
| Settlement date: | July 2
|
| Stock symbol: | OTCBB: LQMT
|
| Stock price: | $0.32 at close June 30
|
| Market capitalization: | $48.79 million
|
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