By Laura Lutz
Des Moines, March 4 - VeriChip Corp. received an $8 million non-convertible term loan from Valens Offshore II, Corp.
As consideration for the financing, Valens received 120,000 shares of VeriChip.
The loan matures in 13 months and bears interest at 12% per year.
VeriChip said it will use $5.3 million of the proceeds to prepay debt owed to Digital Angel. The rest will be used for working capital.
VeriChip is a Delray Beach, Fla.-based maker of radio frequency identification systems.
| Issuer: | VeriChip Corp.
|
| Issue: | Non-convertible term loan
|
| Amount: | $8 million
|
| Maturity: | 13 months
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Shares: | 120,000
|
| Warrants: | No
|
| Investor: | Valens Offshore II, Corp.
|
| Settlement date: | March 4
|
| Stock symbol: | Nasdaq: CHIP
|
| Stock price: | $2.50 at close March 3
|
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