By Devika Patel
Knoxville, Tenn., Feb. 13 - Tri-Isthmus Group, Inc. settled a $1.5 million private placement of convertible promissory notes on Feb. 11, according to an 8-K filed Friday with the Securities and Exchange Commission.
The company sold a $500,000 note to SMP Investments, LLC and a $1 million note to Anthony J. Ciabattoni.
The notes mature on Nov. 6, 2009, but their maturity may be extended for three months. Their 16% coupon will be payable at maturity.
The notes are convertible into common shares at an initial conversion price of $0.625 per share.
The investors also received four warrants.
SMP received two warrants, one for 375,000 common shares, exercisable at $0.50 for three years, and one for 250,000 shares, exercisable at $0.75 for three years.
Ciabattoni also received two warrants, one for 750,000 shares, exercisable at $0.50 for three years and one for 500,000 shares, exercisable at $0.75 for three years.
Los Angeles-based Tri-Isthmus invests in companies in the business, health care and energy services sectors.
| Issuer: | Tri-Isthmus Group, Inc.
|
| Issue: | Convertible promissory notes
|
| Amount: | $1.5 million
|
| Maturity: | Nov. 6, 2009
|
| Coupon: | 16%
|
| Price: | Par
|
| Yield: | 16%
|
| Conversion price: | $0.625
|
| Warrants: | For 1,875,000 shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.50 (for 1,125,000 shares), $0.75 (for 750,000 shares)
|
| Investors: | SMP Investments, LLC (for $500,000), Anthony J. Ciabattoni (for $1 million)
|
| Settlement date: | Feb. 11
|
| Stock symbol: | Pink Sheets: TISG
|
| Stock price: | $0.48 at close Feb. 11
|
| Market capitalization: | $4.66 million
|
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