Inter-Mountain Capital buys secured convertible at a $75,000 discount
By Devika Patel
Knoxville, Tenn., May 13 - Neah Power Systems, Inc. sold an $832,500 13-month 5% secured convertible promissory note to Inter-Mountain Capital Corp. LLC on May 7, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The principal includes $7,500 in legal expenses and a $75,000 original issue discount for total proceeds to the company of $750,000, consisting of $450,000 paid in cash at closing and $300,000 of 5% secured promissory notes.
The 5% convertible is due on Oct. 7, 2015. It converts to common stock at $0.05 per share and may be prepaid at any time at 125. The conversion price is a 150% premium to the May 6 closing share price of $0.02.
Bothell, Wash.-based Neah Power develops methanol fuel cells using silicon-based technologies.
| Issuer: | Neah Power Systems, Inc.
|
| Issue: | Secured convertible promissory note
|
| Amount: | $832,500
|
| Maturity: | Oct. 7, 2015
|
| Price: | $75,000 original issue discount ($750,000)
|
| Coupon: | 5%
|
| Conversion price: | $0.05
|
| Conversion premium: | 150%
|
| Call: | At 125
|
| Warrants: | No
|
| Investor: | Inter-Mountain Capital Corp. LLC
|
| Settlement date: | May 7
|
| Stock symbol: | OTCBB: NPWZ
|
| Stock price: | $0.02 at close May 6
|
| Market capitalization: | $17.15 million
|
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