By Devika Patel
Knoxville, Tenn., Oct. 31 - Vortex Resources Corp. sold another $400,000 of its 8.5% convertible notes to Trafalgar Capital Specialized Investment Fund, Luxembourg, on Oct. 28, according to an 8-K filed Friday with the Securities and Exchange Commission.
The company may sell a total of $2.75 million in notes. It sold $1.6 million in notes on Sept. 25.
The notes mature in September 2010 and are convertible into common shares at a conversion price equal to 85% of the volume weighted average price for the 10 days immediately preceding the conversion, with a floor of $2.00 per share.
The company is required to redeem the notes, starting on the fourth month, in equal installments of $56,000, with a final payment of $480,000.
It also must pay a redemption premium of 7% on the first redemption payment, which will increase 1% per month.
It may prepay the notes with a redemption premium of 15%.
Based in Beverly Hills, Calif., Vortex invests in the development and real estate development, financing and investments business.
| Issuer: | Vortex Resources Corp.
|
| Issue: | Convertible notes
|
| Amount: | $2.75 million
|
| Maturity: | September 2010
|
| Coupon: | 8.5%
|
| Price: | Par
|
| Yield: | 8.5%
|
| Conversion price: | 85% of the volume weighted average price for the ten days immediately preceding the conversion, floor of $2.00 per share
|
| Redemption premium: | 15%
|
| Warrants: | No
|
| Investors: | Trafalgar Capital Specialized Investment Fund, Luxembourg
|
| Settlement date: | Sept. 25 (for $1.6 million), Oct. 28 (for $400,000)
|
| Stock symbol: | OTCBB: VTEX
|
| Stock price: | $1.16 at close Sept. 25
|
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