Promissory note sold for $2.4 million along with five-year warrants
By Devika Patel
Knoxville, Tenn., July 8 - MusclePharm Corp. sold a $2.65 million secured convertible promissory note to Inter-Mountain Capital Corp. on June 29, according to an 8-K filed Friday with the Securities and Exchange Commission. The note was sold for $2.4 million, for an original issue discount of $241,000.
The 6% note matures in four years and after three months may be converted into common shares at a price equal to 80% of the lowest trade price during the 30 trading days immediately preceding the date of the conversion.
Inter-Mountain Capital also received a five-year warrant to buy a number of shares equal to $800,000 divided by 80% of the lowest trade price of the common stock during the 30 trading days immediately preceding the closing date.
The Denver-based company develops and manufactures a line of nutritional supplements.
Issuer: | MusclePharm Corp.
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Issue: | Secured convertible promissory note
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Amount: | $2,651,000
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Price: | $2.4 million
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Maturity: | Four years
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Coupon: | 6%
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Warrants: | Yes
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Warrant expiration: | Five years
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Investor: | Inter-Mountain Capital Corp.
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Settlement date: | June 29
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Stock symbol: | OTCBB: MSLP
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Stock price: | $0.03 at close June 29
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Market capitalization: | $4.14 million
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