Offering includes five-year warrants; $1.2 million of debentures sold
By Devika Patel
Knoxville, Tenn., May 24 - Visualant, Inc. completed a private placement of 10% original issue discount convertible debentures on May 19, according to an 8-K filed Tuesday with the Securities and Exchange Commission. The company sold $1.2 million of debentures for $1 million in cash.
The financing was led by Gemini Strategies LLC and Ascendiant Capital Partners LLC.
The debentures are due on May 1, 2012, and convert into common shares at a floor conversion price of $0.35 per share.
The investors also received five-year warrants for 2.4 million shares, which are each exercisable at $0.50.
The conversion price is a 6.06% premium to the May 18 closing share price of $0.33. The warrant strike price is a 51.52% premium to that price.
Proceeds will be used for strategic plans, including planned acquisitions and the market development of the company's Spectral Pattern Matching Technology.
Seattle-based Visualant develops security and authentication systems technology.
| Issuer: | Visualant, Inc.
|
| Issue: | Original issue discount convertible debentures
|
| Amount: | $1.2 million
|
| Maturity: | May 1, 2012
|
| Coupon: | 10%
|
| Price: | $1 million
|
| Conversion price: | $0.35 (floor)
|
| Warrants: | For 2.4 million shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.50
|
| Investors: | Gemini Strategies LLC and Ascendiant Capital Partners LLC (leads)
|
| Settlement date: | May 19
|
| Stock symbol: | OTCBB: VSUL
|
| Stock price: | $0.31 at close May 19
|
| Market capitalization: | $12.36 million
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