By Devika Patel
Knoxville, Tenn., April 12 - NewCardio, Inc. settled a $1.5 million debenture line of credit on July 28, according to an 8-K filed Thursday with the Securities and Exchange Commission.
This new $1.5 million line of credit is being provided by three existing investors that participated in the company's $3 million July 2009 credit line. The company may draw from the line beginning in January.
The debt will be structured as a 12% secured revolving debenture due Sept. 30, 2011.
In addition, the investors will receive five-year warrants for 750,000 common shares, which are each exercisable at $1.00.
The credit facility is part of a series of steps designed to improve the company's ability to identify and attract strategic relationships and investors, which is intended to enable the company to maximize the value to be derived through continued development of its 3D platform technology.
Proceeds will strengthen the company's financial position, which will allow it further time to commercialize fully its lead solution, QTinno.
Santa Clara, Calif.-based NewCardio is a development-stage cardiac diagnostic company focused on the research, development and commercialization of products and services for the non-invasive diagnosis and monitoring of cardiovascular disease.
| Issuer: | NewCardio, Inc.
|
| Issue: | Secured revolving debentures
|
| Amount: | $1.5 million
|
| Maturity: | Sept. 30, 2011
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Warrants: | For 750,000 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $1.00
|
| Settlement date: | July 28
|
| Stock symbol: | OTCBB: NWCI
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| Stock price: | $0.88 at close July 28
|
| Market capitalization: | $25.15 million
|
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