By Laura Lutz
Des Moines, Nov. 14 - Network CN Inc. sold a $5 million convertible promissory note to Wei An Developments Ltd., according to an 8-K filing with the Securities and Exchange Commission.
The note matures in six months and bears interest at 12% per year. It is convertible into common stock at $2.40 per share.
There is a commitment fee equal to 2% of the principal amount of the note.
Network CN may extend the note by an additional six months at an interest rate of 14% per year and an additional commitment fee of 2% of the principal amount.
There is no prepayment penalty.
The investor also received warrants for 250,000 shares, exercisable at $2.30 for two years.
Hong Kong-based Network CN provides network services to hotels in China.
| Issuer: | Network CN Inc.
|
| Issue: | Convertible promissory note
|
| Amount: | $5 million
|
| Maturity: | Six months (may be extended by six months)
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | $2.40
|
| Warrants: | For 250,000 shares
|
| Warrant expiration: | Two years
|
| Warrant strike price: | $2.30
|
| Investor: | Wei An Developments Ltd.
|
| Settlement date: | Nov. 12
|
| Stock symbol: | OTCBB: NWCN
|
| Stock price: | $1.89 at close Nov. 12
|
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