8% convertible preferreds, common shares sold with warrant coverage
By Devika Patel
Knoxville, Tenn., Aug. 11 – Visualant, Inc. settled a $1.25 million private placement of 8% series C convertible preferred stock on Aug. 5, according to an 8-K filed Thursday with the Securities and Exchange Commission. Garden State Securities, Inc. was the agent for the deal, which raised a further $500,000 by selling common stock on Aug. 10.
The company sold the common shares at $0.70 per share, a 30% discount to the Aug. 4 closing share price of $1.00.
Each preferred will be convertible into common shares at $0.70 per share, a 30% discount to the Aug. 4 closing share price.
The investors in both sales also received 100% warrant coverage. Each warrant is exercisable at $0.70 for five years. The strike price is a 30% discount to the Aug. 4 closing price.
Seattle-based Visualant develops light-based security and authentication systems technology.
| Issuer: | Visualant, Inc.
|
| Issue: | Series C preferred stock
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| Amount: | $1.75 million
|
| Warrants: | 100% coverage
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| Warrant expiration: | Five years
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| Warrant strike price: | $0.70
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| Agent: | Garden State Securities, Inc.
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| Settlement dates: | Aug. 5 (for $1.25 million), Aug. 10 (for $500,000)
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| Stock symbol: | OTCBB: VSUL
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| Stock price: | $1.00 at close Aug. 4
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| Market capitalization: | $2.35 million
|
|
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| Preferreds
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| Amount: | $1.25 million
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| Dividend: | 8%
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| Conversion price: | $0.70
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|
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| Stock
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| Amount: | $500,000
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| Price: | $0.70
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