One-year note sold to JMJ accrues no interest if repaid within 90 days
By Toni Weeks
San Diego, July 13 - North Bay Resources Inc. issued a $550,000 convertible promissory note to JMJ Financial on July 11, according to an 8-K filed Friday with the Securities and Exchange Commission.
The one-year note was issued with an original issue discount of 10%.
The note bears interest at 0% if repaid within 90 days. A one-time interest rate of 5% will be applied if the note is still outstanding after 90 days.
After 90 days, the note is convertible into common shares at the lesser of $0.10 per share or 70% of the average of the two lowest closing prices during the 25 trading days prior to conversion.
The company received $100,000 at closing.
North Bay Resources is a junior mining company in Skippack, Pa.
| Issuer: | North Bay Resources Inc.
|
| Issue: | Convertible promissory note
|
| Amount: | $550,000
|
| Maturity: | One year
|
| Price: | 10% discount
|
| Coupon: | 0% if repaid within 90 days; otherwise, one-time 5% interest rate will apply
|
| Conversion price: | Lesser of $0.10 per share or the 70% of the average of the two lowest closing prices during 25 trading days prior to conversion
|
| Investor: | JMJ Financial
|
| Settlement date: | July 11
|
| Stock symbol: | OTCBB: NBRI
|
| Stock price: | $0.07 at close July 12
|
| Market capitalization: | $6.45 million
|
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