Sale also includes 10-year warrants; Emergent Financial is the agent
By Devika Patel
Knoxville, Tenn., Sept. 11 - Vertical Health Solutions, Inc. completed the second $135,000 tranche of a $1.5 million private placement of 6% convertible promissory notes on Sept. 7, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal raised $330,000 from Aug. 10 to Aug. 23.
The three-year note is initially convertible into common shares at $0.25 per share, which represents an 80% discount to $1.25, the Aug. 9 closing share price. It will automatically convert if the company raises at least $2.5 million in a placement of stock.
The investors also received ten-year warrants for 330,000 common shares in the first tranche and warrants for 135,000 shares in the second. The warrants are each exercisable at $1.25, which is identical to the Aug. 9 closing share price.
The placement is being conducted by agent Emergent Financial Group, Inc.
Based in Tampa, Fla., Vertical Health provides animal health care products to veterinarians.
Issuer: | Vertical Health Solutions, Inc.
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Issue: | Convertible promissory notes
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Amount: | $1.5 million
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Maturity: | Three years
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Coupon: | 6%
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Conversion price: | $0.25
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Call: | Yes
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Warrants: | For 465,000 shares
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Warrant expiration: | 10 years
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Warrant strike price: | $1.25
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Agent: | Emergent Financial Group, Inc.
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Settlement date: | Aug. 10 to Aug. 23 (for $330,000), Sept. 7 (for $135,000)
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Stock symbol: | OTCBB: ONMD
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Stock price: | $1.25 at close Aug. 9
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Market capitalization: | $8.79 million
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