By Devika Patel
Knoxville, Tenn., Oct. 28 - Vycon, Inc. said it negotiated a bridge loan for $1 million.
BankInvest, Cooper Capital and the Cabayan Family Trust, each a substantial shareholder in Vycon, are each contributing $333,333 under the bridge loan.
The loan will convert into a convertible loan note once the company raises $3 million.
The note will have a one-year term and a 10% interest rate.
Additionally, in connection with the note, the investors each will receive a warrant for 466,473 shares, exercisable at 25p for five years.
Vycon, based in Yorba Linda, Calif., is a designer, developer and manufacturer of flywheel-based energy storage systems.
| Issuer: | Vycon, Inc.
|
| Issue: | Bridge loan
|
| Amount: | $1 million
|
| Maturity: | One year
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Warrants: | For 1,399,419 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | 25p
|
| Investors: | BankInvest (for $333,333), Cooper Capital (for $333,333) and the Cabayan Family Trust (for $333,333)
|
| Announcement date: | Oct. 28
|
| Stock symbol: | London: VYCO
|
| Stock price: | 34p at close on Oct. 28
|
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