By Sheri Kasprzak
New York, July 7 - Nephros, Inc. completed another closing of a private placement for $200,000, bringing its total proceeds to $5.2 million.
The company issued the 6% notes to Kudu Partners, LP and LJHS Co. The notes are due 2012 and are convertible into common shares at $2.10 each.
Nephros may force conversion of the notes if the average closing stock price exceeds 240% of the then-effective conversion price and the average daily volume exceeds 35,000 shares over a prescribed period.
If Nephros chooses to prepay the notes before June 1, 2008, the investors will receive warrants equal to three shares for every $20 in principal prepaid. The warrants are exercisable at a penny each.
On June 2, Nephros concluded a $5 million closing of the offering with Southpaw Credit Opportunity Master Fund LP, 3V Capital Master Fund Ltd. and Distressed/High Yield Trading Opportunities, Ltd.
New York-based Nephros develops filtration products for patients with end-stage renal disease.
| Issuer: | Nephros, Inc.
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| Issue: | Secured convertible notes
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| Amount: | $200,000
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| Maturity: | 2012
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| Coupon: | 6%
|
| Price: | Par
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| Yield: | 6%
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| Conversion price: | $2.10
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| Call: | May be prepaid at a premium to face value plus interest
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| Warrants: | For three shares per $20 in principal prepaid, if notes are prepaid before June 1, 2008
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| Warrant strike price: | $0.01
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| Investors: | Kudu Partners, LP and LJHS Co.
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| Settlement date: | June 30
|
| Stock symbol: | Amex: NEP
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| Stock price: | $1.69 at close June 30
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