Offering of discounted securities arranged via agent Rodman & Renshaw
By Devika Patel
Knoxville, Tenn., June 17 - Vu1 Corp. said it has negotiated a private placement of convertible debentures. The company will sell $4.12 million of convertibles for $3.5 million via agent Rodman & Renshaw, LLC.
The convertibles have an original issue discount of 15% and mature in two years. They may be converted into common shares at $0.55 per share, a 27.91% premium to the June 16 closing share price of $0.43. The company may force conversion if the closing bid price for the common stock has traded at more than $1.50 per share for 10 consecutive trading days.
Investors will also receive warrants for 3,734,409 shares. Each warrant is exercisable at $0.65 for five years. The strike price is a 51.16% premium to the June 16 closing share price.
Settlement is expected on June 21.
New York-based Vu1 is focused on developing and selling a line of mercury-free, energy-efficient light bulbs based on its proprietary light-emitting technology.
| Issuer: | Vu1 Corp.
|
| Issue: | Convertible debentures
|
| Amount: | $4,117,750
|
| Maturity: | Two years
|
| Price: | $3.5 million (15% discount)
|
| Conversion price: | $0.55
|
| Call: | If closing bid price for the stock has traded at more than $1.50 per share for 10 consecutive trading days
|
| Warrants: | For 3,734,409 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.65
|
| Agent: | Rodman & Renshaw, LLC
|
| Pricing date: | June 17
|
| Settlement date: | June 21
|
| Stock symbol: | OTCBB: VUOC
|
| Stock price: | $0.43 at close June 16
|
| Market capitalization: | $48.64 million
|
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