Sumitomo Precision Products will purchase common shares at $0.20 each
By Devika Patel
Knoxville, Tenn., April 10 - Visualant, Inc. arranged a $3 million private placement of stock with Sumitomo Precision Products Co., Ltd. on April 4, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
The company will sell 15 million common shares at $0.20 per share. The price per share is an 81.82% premium to the April 3 closing share price of $0.11.
The company and investor also intend to enter into a joint development agreement for the commercialization of Visualant's patented Spectral Pattern Matching. They are expected to enter into a license agreement, which will provide Sumitomo with an exclusive license to access all related IP of the Spectral Pattern Matching technology in an exclusive territory. The maximum initial license payment under such a license agreement would be $1 million. The exact amount of the initial payment and the terms of the exclusive territory are to be determined.
Seattle-based Visualant develops security and authentication systems technology.
| Issuer: | Visualant, Inc.
|
| Issue: | Securities purchase agreement
|
| Amount: | $3 million
|
| Shares: | 15 million
|
| Price: | $0.20
|
| Warrants: | No
|
| Investor: | Sumitomo Precision Products Co., Ltd.
|
| Pricing date: | April 4
|
| Stock symbol: | OTCBB: VSUL
|
| Stock price: | $0.11 at close April 3
|
| Market capitalization: | $5.86 million
|
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