6% secured promissory notes convertible into series B preferred stock
By Devika Patel
Knoxville, Tenn., March 12 – Virtual Piggy, Inc. negotiated a $2 million private placement of secured convertible promissory notes on March 6, according to an 8-K filed Thursday with the Securities and Exchange Commission.
The 6% notes are due March 5, 2016 and will be convertible into series B cumulative convertible preferred stock at $90.00 per preferred. Each preferred is convertible into 100 common shares at $0.90 per share, which is a 104.55% premium to the March 5 closing share price of $0.44.
Virtual Piggy is a Hermosa Beach, Calif.-based company developing its online “Piggy Bank” security service that will allow parents to set up and control their children’s spending online.
| Issuer: | Virtual Piggy, Inc.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $2 million
|
| Maturity: | March 5, 2016
|
| Coupon: | 10%
|
| Conversion price: | $90.00 (per preferred)
|
| Conversion ratio: | Into 100 common shares (per preferred)
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| Conversion price: | $0.90 (per common share)
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| Conversion premium: | 104.55%
|
| Warrants: | No
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| Announcement date: | March 12
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| Settlement date: | March 6
|
| Stock symbol: | OTCBB: VPIG
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| Stock price: | $0.44 at close March 5
|
| Market capitalization: | $52.7 million
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