Offering sells senior secured notes with warrants for 2,422,222 shares
By Devika Patel
Knoxville, Tenn., Nov. 14 - VeriTeQ Corp. settled a private placement of $1.82 million senior secured convertible notes on Nov. 13, according to an 8-K filed Thursday with the Securities and Exchange Commission. The notes were sold by Dawson James Securities, Inc. for total proceeds of $1.5 million.
The note matures in one year and is initially convertible into common stock at lower of $0.75 and 90% of the lower of the closing bid price as of the trading day immediately preceding the settlement date and the price computed as the quotient of the sum of the three lowest volume-weighted average price per share of the stock during the 10 trading days preceding the settlement date, divided by three.
The investors also received five-year warrants for 2,422,222 shares, which are each exercisable at 150% of the lower of the closing bid price as of the trading day preceding the settlement date and the price computed as the quotient of the sum of the three lowest volume-weighted average prices during the 10 consecutive trading day period preceding the settlement date, divided by three.
The Delray Beach, Fla., company develops mobile games.
| Issuer: | VeriTeQ Corp.
|
| Issue: | Senior secured convertible note
|
| Amount: | $1,816,667
|
| Maturity: | One year
|
| Price: | $1.5 million
|
| Conversion price: | Lower of $0.75 and 90% of the lower of the closing bid price as of the trading day immediately preceding the settlement date and the price computed as the quotient of the sum of the three lowest volume-weighted average prices per share of the stock during the 10 trading days preceding the settlement date, divided by three
|
| Warrants: | For 2,422,222 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | 150% of the lower of the closing bid price as of the trading day preceding the settlement date and the price computed as the quotient of the sum of the three lowest volume-weighted average prices during the 10 consecutive trading day period preceding the settlement date, divided by three
|
| Agent: | Dawson James Securities, Inc.
|
| Settlement date: | Nov. 13
|
| Stock symbol: | OTCBB: DIGAD
|
| Stock price: | $2.03 at close Nov. 12
|
| Market capitalization: | $2.94 million
|
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