Company sells promissory notes due Dec. 31, 2012, four-year warrants
By Devika Patel
Knoxville, Tenn., Aug. 13 - T3 Motion, Inc. completed a $525,000 private placement of 10% secured convertible promissory notes with JMJ Financial on Aug. 10, according to an 8-K filed Monday with the Securities and Exchange Commission.
The proceeds were comprised of $250,000 of cash and $275,000 of converted debt held by the investor; additional draws of up to $475,000 are available under the note.
The convertibles are due Dec. 31, 2012 and are convertible into common stock at $1.31 per share. The conversion price is a 70.13% premium to $0.77, the Aug. 9 closing share price.
JMJ also received four-year warrants for 550,000 shares. They are exercisable at $0.60, which is a 22.08% discount to the Aug. 9 closing share price.
In addition, the company will pay JMJ an origination fee of $26,250, which will be satisfied by issuing 43,750 restricted common shares.
Based in Costa Mesa, Calif., T3 makes personal mobility vehicles powered by electric motors.
| Issuer: | T3 Motion, Inc
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $525,000
|
| Maturity: | Dec. 31, 2012
|
| Coupon: | 10%
|
| Conversion price: | $1.31
|
| Conversion premium: | 70.13%
|
| Warrants: | For 550,000 shares
|
| Warrant expiration: | Four years
|
| Warrant strike price: | $0.60
|
| Investor: | JMJ Financial
|
| Fees: | 43,750 shares
|
| Settlement date: | Aug. 10
|
| Stock symbol: | OTCBB: TTTM
|
| Stock price: | $0.77 at close Aug. 9
|
| Market capitalization: | $10.32 million
|
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