By Sheri Kasprzak
Atlanta, June 1 - New Visual Corp. said it has wrapped a private placement for $3.5 million.
The company sold three-year 7% senior secured convertible debentures to institutional and private investors.
The debentures are convertible into common shares at the lower of 70% of the five-day volume weighted average price of the company's shares immediately before conversion or the lowest purchase or conversion price applicable on a subsequent financing.
The debentures are secured by a lien on the company's assets.
The investors in the offering also received warrants for 11,312,220 shares at $0.1547 each for one year following the effective date of the registration statement. The investors also received warrants for up to 22,624,430 shares, exercisable at $0.3094 through the third anniversary of the effective date of the registration statement.
Based in Portland, Ore., New Visual provides semiconductors to the broadband industry. The proceeds from the deal will be used to complete a commercially deployable version of the company's chipset.
| Issuer: | New Visual Corp.
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| Issue: | Senior secured convertible debentures
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| Amount: | $3.5 million
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| Maturity: | Three years
|
| Coupon: | 7%
|
| Price: | Par
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| Yield: | 7%
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| Conversion price: | The lower of 70% of five-day volume weighted average price of company's shares immediately before conversion or lowest purchase or conversion price applicable on a subsequent financing
|
| Warrants: | For 11,312,220 shares; for 22,624,430 shares
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| Warrant expiration: | One year for 11,312,220 shares; three years for 22,624,430 shares
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| Warrant strike price: | $0.1547 for 11,312,220 shares; $0.3094 for 22,624,430 shares
|
| Settlement date: | May 26
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| Stock price: | $0.15 at close May 26
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