10% secured promissory notes convertible into series B preferred stock
By Devika Patel
Knoxville, Tenn., May 10 – Virtual Piggy, Inc. settled a $100,000 private placement of secured convertible promissory notes on May 5, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The 10% notes are due March 6, 2017 and are 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 an 800% premium to the May 4 closing share price of $0.10.
The new notes are in addition to $2.94 million of outstanding promissory notes of the same series issued on March 5. The maturity date of those notes was subsequently extended to March 6, 2017 with the consent of the noteholders.
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: | $100,000
|
| Maturity: | March 6, 2017
|
| Coupon: | 10%
|
| Conversion price: | $90.00 per share of series B cumulative convertible preferred stock
|
| Conversion ratio: | Into 100 common shares per preferred
|
| Conversion price: | $0.90 per common share
|
| Conversion premium: | 800%
|
| Warrants: | No
|
| Settlement date: | May 5
|
| Stock symbol: | OTCBB: VPIG
|
| Stock price: | $0.10 at close May 4
|
| Market capitalization: | $9.7 million
|
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