By Sheri Kasprzak
New York, Dec. 20 - Nanoscience Technologies, Inc. said it has concluded a private placement of secured convertible debentures for $1,690,359.
The company sold the 8% debentures to Highgate House Funds, Ltd. in two separate closings. The company issued $1,370,359 in principal of the debentures in the first tranche and $320,000 in the second.
The debentures mature Dec. 14, 2008 and are convertible into common shares at the lower of $1.20 or 80% of the lowest closing bid price for the five trading days before conversion.
The debentures may be redeemed at 120% of the amount being redeemed plus interest.
The investor also received a warrant for 100,000 shares, exercisable for three years.
Nanoscience used $1,050,359 of the proceeds to repay its 5% secured convertible debentures due April 28, 2008. The 5% debentures were held by Highgate and Montgomery Equity Partners, Ltd. The remainder of the proceeds will be used for working capital.
Based in New York, Nanoscience develops and commercializes inventions and intellectual property generated by research projects conducted at New York University.
| Issuer: | Nanoscience Technologies, Inc.
|
| Issue: | Secured convertible debentures
|
| Amount: | $1,690,359
|
| Maturity: | Dec. 14, 2008
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | The lower of $1.20 or 80% of the lowest closing bid price for the five trading days before conversion
|
| Warrants: | For 100,000 shares
|
| Warrant expiration: | Three years
|
| Settlement date: | Dec. 14
|
| Stock price: | $0.45 at close Dec. 14
|
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