Three-year unsecured debentures will convert to stock at variable rate
By Devika Patel
Knoxville, Tenn., May 5 – Transbiotec, Inc. will raise between $200,000 and $3 million in a private placement of unsecured convertible debentures on a best-efforts basis, according to an 8-K filed Thursday with the Securities and Exchange Commission. The deal priced on April 1.
The 12% debenture matures in three years. It converts to common stock at issuance at a 35% discount to the average closing price of the stock during the 15 trading days preceding conversion.
The Seal Beach, Calif., company has developed a transdermal sensor that detects blood alcohol levels through a person’s skin.
| Issuer: | Transbiotec, Inc.
|
| Issue: | Unsecured convertible debentures
|
| Amount: | $200,000 (minimum), $3 million (maximum)
|
| Term: | 36 months
|
| Coupon: | 12%
|
| Conversion price: | 65% of the average closing price of the stock during the 15 trading days preceding conversion
|
| Warrants: | No
|
| Pricing date: | April 1
|
| Stock symbol: | OTCBB: IMLE
|
| Stock price: | $0.01 at close March 31
|
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