By Laura Lutz
Des Moines, Aug. 2 - Viking Systems, Inc. closed a $2.6 million private placement of secured convertible debentures with four investors.
The debentures mature on Feb. 23, 2009 and bear interest at 8% per year, payable quarterly.
They are convertible into common stock at $0.18 per share. If Viking does not achieve certain operation milestones during the third quarter of 2007, the conversion price will be reduced to $0.12 per share.
Under certain conditions, Viking may redeem the debentures early, in whole or in part. The early redemption price will be 120% of par during the first year and 140% of par thereafter.
The investors also received warrants. Each holder's warrant will be exercisable for half of the number of shares issuable under conversion of that holder's debenture.
The exercise price of the warrants will be equal to the then-effective conversion price. The warrants expire on Feb. 23, 2014.
Brian Miller, one of Viking's directors, was one of the investors.
The placement was non-brokered.
Proceeds will be used for strategic initiatives, accounts payable, working capital and general corporate purposes.
Based in La Jolla, Calif., Viking develops three-dimensional endoscopic vision systems used in minimally invasive surgery.
| Issuer: | Viking Systems, Inc.
|
| Issue: | Secured convertible debentures
|
| Amount: | $2.6 million
|
| Maturity: | Feb. 23, 2009
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Conversion price: | $0.18; may be lowered to $0.12
|
| Warrants: | Each warrant will be exercisable for half the number of shares issuable under conversion of that holder's debenture
|
| Warrant expiration: | Feb. 23, 2014
|
| Warrant strike price: | $0.18; may be lowered to $0.12
|
| Agent: | Non-brokered
|
| Investor: | Brian Miller, three others
|
| Settlement date: | July 31
|
| Stock symbol: | OTCBB: VKSY
|
| Stock price: | $0.18 at close Aug. 1
|
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