Sale also includes 10-year warrants; Emergent Financial is the agent
By Devika Patel
Knoxville, Tenn., Jan. 8 - Vertical Health Solutions, Inc. completed a $487,000 tranche of a $1.5 million private placement of 6% convertible promissory notes on Dec. 31, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The deal raised $906,000 from Aug. 10 to Sept. 28 and settled the $487,000 from Oct. 1 through Dec. 31.
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 10-year warrants for 906,000 common shares in the first tranche and warrants for 487,000 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.
|
| Issue: | Convertible promissory notes
|
| Amount: | $1.5 million
|
| Maturity: | Three years
|
| Coupon: | 6%
|
| Conversion price: | $0.25
|
| Call: | Yes
|
| Warrants: | For 465,000 shares
|
| Warrant expiration: | 10 years
|
| Warrant strike price: | $1.25
|
| Agent: | Emergent Financial Group, Inc.
|
| Settlement date: | Aug. 10 to Sept. 28 (for $906,000), Oct. 1 to Dec. 31 (for $487,000)
|
| Stock symbol: | OTCBB: ONMD
|
| Stock price: | $1.25 at close Aug. 9
|
| Market capitalization: | $9.62 million
|
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