By Sheri Kasprzak
Atlanta, June 16 - Liquidmetal Technologies Inc. said it has raised $3.25 million in a private placement of unsecured convertible notes.
The notes, due June 13, 2006 or when the company receives at least $4 million in an equity financing, bear interest at 10% annually.
The notes are redeemable at any time without penalty. If the notes have not been redeemed 120 days after the issue date or if the company fails to complete an equity financing of at least $5 million, the notes will be convertible into common shares at a price equal to 75% of Liquidmetal's closing stock price the first trading day before the conversion date.
The investors also received warrants for 812,500 shares, exercisable at $2.00 each through June 13, 2010.
Based in Lake Forest, Calif., Liquidmetal makes products from amorphous alloys.
| Issuer: | Liquidmetal Technologies Inc.
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| Issue: | Unsecured convertible notes
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| Amount: | $3.25 million
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| Maturity: | The earlier of June 13, 2006, or when the company completes a $4 million equity financing
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| Coupon: | 10%
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| Price: | Par
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| Yield: | 10%
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| Conversion price: | Equal to 75% of closing stock price first trading day before conversion
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| Call: | Redeemable at face value
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| Warrants: | For 812,500 shares
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| Warrant expiration: | June 13, 2010
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| Warrant strike price: | $2.00
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| Settlement date: | June 13
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| Stock price: | $1.72 at close June 16
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