Each unit includes three-year warrants for preferreds, discount notes
By Devika Patel
Knoxville, Tenn., March 4 – Medical Alarm Concepts Holding, Inc. settled a $625,000 private placement of units with two investors on March 1 and March 3, according to an 8-K filed Friday with the Securities and Exchange Commission.
The company sold 25 units of a $25,000 original issue discount convertible promissory note and warrants for 277,778 series C convertible preferred shares at $25,000 per unit. The zero-coupon notes, sold at a 10% original issue discount and due in February 2017, are convertible into common stock at $0.01 per share. The warrants are each exercisable at $0.09 for three years.
The series C convertible preferreds are convertible at a rate equal to 10 common shares for each preferred.
The notes’ conversion price is a 94.74% discount to the Feb. 29 closing share price of $0.19. The warrant strike price is a 52.63% discount to that price.
The Plymouth Meeting, Pa., company develops and manufactures medical alarm system products.
| Issuer: | Medical Alarm Concepts Holding, Inc.
|
| Issue: | Units of a $25,000 original issue discount convertible promissory note and warrants for 277,778 series C convertible preferred shares
|
| Amount: | $625,000
|
| Units: | 25
|
| Price: | $25,000
|
| Coupon: | 0%
|
| Discount: | 10%
|
| Maturity: | February 2017
|
| Conversion price: | $0.01
|
| Warrants: | For 277,778 convertible preferreds
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.09
|
| Pricing date: | March 1 and March 3
|
| Stock symbol: | OTCBB: MDHI
|
| Stock price: | $0.19 at close Feb. 29
|
| Market capitalization: | $1.2 million
|
|
|
| Preferreds
|
| Conversion rate: | 10 common shares per preferred
|
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