Deal includes five-year warrants and 12% convertible promissory notes
By Devika Patel
Knoxville, Tenn., Dec. 13 - RealSource Residential, Inc. settled a $2.31 million private placement of units on Dec. 9, according to an 8-K filed Friday with the Securities and Exchange Commission. The deal has a $75,000 greenshoe.
The company sold 231 units of a $10,000 12% series A senior unsecured convertible promissory note with 50% warrant coverage at $10,000 per unit.
The notes are due on Dec. 9, 2015 and are convertible into common stock at $0.50 per share. They may be prepaid. The warrants are each exercisable at $2.00 for five years.
The conversion price and warrant strike price are 150% and 900% premiums to the Dec. 6 closing share price of $0.20.
Proceeds were used to acquire a $2.85 million subordinated mortgage note secured by the Cambridge Apartments in Gulfport, Miss., for about $1.07 million and for costs associated with the refinancing of senior mortgage debt on the Gulfport property. Proceeds will also be used for general working capital.
The Salt Lake City company is developing developing technology related to biomarker identification, disease susceptibility and drug response areas of cancer.
| Issuer: | RealSource Residential, Inc.
|
| Issue: | Units of a $10,000 series A senior unsecured convertible promissory note and 50% warrant coverage
|
| Amount: | $2.31 million
|
| Units: | 231
|
| Price: | $10,000
|
| Coupon: | 12%
|
| Maturity: | Dec. 9, 2015
|
| Conversion price: | $0.50
|
| Call: | Yes
|
| Warrants: | 50% coverage (one warrant for 10,000 shares per unit)
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $2.00
|
| Pricing date: | Dec. 9
|
| Stock symbol: | OTCBB: RSRT
|
| Stock price: | $0.20 at close Dec. 6
|
| Market capitalization: | $3.59 million
|
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