Company sells 5% original issue discount convertible notes due 2016
By Devika Patel
Knoxville, Tenn., June 23 – Neah Power Systems, Inc. sold $832,500 of original issue discount convertible notes to Inter-Mountain Capital Corp. LLC for $750,000 in a private placement, according to an 8-K filed Monday with the Securities and Exchange Commission. The company received the initial funding on June 16.
The 5% notes are due Sept. 15, 2016. The notes convert to common shares at $0.05 per share. It may be prepaid at 125.
The conversion price is a 400% premium to the June 15 closing share price of $0.01.
The note was sold with a $75,000 original issue discount. The reduced price also accounts for $7,500 of legal fees.
The note was purchased for $150,000 in cash and four secured promissory notes with a total principal of $600,000.
Bothell, Wash.-based Neah Power develops methanol fuel cells using silicon-based technologies.
| Issuer: | Neah Power Systems, Inc.
|
| Issue: | Convertible notes
|
| Amount: | $832,500
|
| Maturity: | Sept. 15, 2016
|
| Price: | $750,000 ($75,000 original issue discount)
|
| Coupon: | 5%
|
| Conversion price: | $0.05
|
| Conversion premium: | 400%
|
| Call: | At 125
|
| Warrants: | No
|
| Investor: | Inter-Mountain Capital Corp. LLC
|
| Fees: | $7,500
|
| Settlement date: | June 16
|
| Stock symbol: | OTCBB: NPWZ
|
| Stock price: | $0.01 at close June 15
|
| Market capitalization: | $6.75 million
|
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