By Sheri Kasprzak
New York, July 13 - LocatePlus Holdings Corp. said it has completed an $8 million private placement of convertible notes.
The notes mature the earlier of 120 days or when the shareholders vote not to approve a recapitalization, are convertible into at total of 80 million common shares at $0.10 each and bear interest at 3% annually.
The investors also received warrants for 32 million shares, exercisable at $0.15 each through July 8, 2010.
A portion of the proceeds will be used to retire current secured convertible notes and the remainder will be used for working capital.
Laidlaw & Co., Ltd. was the placement agent.
LocatePlus, based in Beverly, Mass., produces databases of background information used by law enforcement officials.
| Issuer: | LocatePlus Holdings Corp.
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| Issue: | Convertible notes
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| Amount: | $8 million
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| Maturity: | The earlier of 120 days or when shareholders vote to reject a recapitalization
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| Coupon: | 3%
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| Price: | Par
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| Yield: | 3%
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| Conversion price: | $0.10
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| Conversion ratio: | Into 80 million common shares
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| Warrants: | For 32 million shares
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| Warrant expiration: | July 8, 2010
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| Warrant strike price: | $0.15
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| Placement agent: | Laidlaw & Co., Ltd.
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| Settlement date: | July 8
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| Stock price: | $0.137 at close July 8
|
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