By Sheri Kasprzak
New York, March 14 - Medical Exchange, Inc. wrapped a private placement of a secured convertible note for $1.05 million as part of its acquisition of I.D.O. Security Ltd.
The 120-day note bears interest at 8% annually and is convertible into common shares at $5.00 each.
The institutional investor that purchased the notes received warrants for 1.134 million shares, exercisable at $5.00 each for five years.
The investor may purchase up to $3 million in the offering.
Under the merger terms, Medical Exchange plans to buy all of the outstanding shares of I.D.O. The acquisition target is an Israeli homeland security business. Medical Exchange plans to carry on I.D.O.'s line of business.
Proceeds will be used for working capital.
Medical Exchange is based in New York. Before the acquisition, the company did not have significant operations.
| Issuer: | Medical Exchange, Inc.
|
| Issue: | Secured convertible notes
|
| Amount: | $1.05 million
|
| Maturity: | 120 days
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $5.00
|
| Warrants: | For 1.134 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $5.00
|
| Settlement date: | Feb. 28
|
| Stock symbol: | OTCBB: MXCH
|
| Stock price: | $1.05 at close Feb. 28
|
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