Company also extends investment and participation rights
By Toni Weeks
San Diego, Aug. 21 - Visualant, Inc. entered into an agreement on Aug. 16 to extend the maturity date of the 10% original issue discount convertible debentures it previously sold to Gemini Master Fund, Ltd. and Ascendiant Capital Partners, LLC, 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 to the investors on May 19, 2011.
The debentures are now due Sept. 30, 2013. On March 12, the company extended the original maturity date, May 1, 2012, to Sept. 30, 2012.
Visualant also extended investment and participation rights to Sept. 30, 2013.
The debentures convert into common shares at a floor conversion price of $0.35 per share.
The investors 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, 2011 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: | Sept. 30, 2013
|
| 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 Master Fund, Ltd. and Ascendiant Capital Partners LLC (leads)
|
| Settlement date: | May 19, 2011
|
| Stock symbol: | OTCBB: VSUL
|
| Stock price: | $0.31 at close May 19, 2011
|
| Market capitalization: | $12.36 million
|
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