8%, 10% convertible notes sold to KBM Worldwide, Tangiers Investment
By Devika Patel
Knoxville, Tenn., Dec. 15 – Medican Enterprises Inc. sold a $43,000 convertible note to KBM Worldwide, Inc. on Nov. 26 as part of a private placement that priced on Nov. 17, according to an 8-K filed Friday with the Securities and Exchange Commission. It also sold a $75,000 convertible promissory note to Tangiers Investment Group, LLC as part of a $220,000 private placement that priced on Nov. 25 and settled on Dec. 9.
The 8% KBM note is due on Aug. 28, 2015 and is convertible into common shares at a price equal to a 42% discount to the average of the three lowest closing bid prices of the stock during the 10-trading-day period preceding conversion. It may be prepaid at prices ranging from 115 to 140.
The 10% Tangiers note is due on Nov. 25, 2015 and is convertible into common shares at a price equal to 58% of the lowest trading price of the stock during the 10 trading days preceding conversion. It may be prepaid at 135.
The shell company is based in Las Vegas.
| Issuer: | Medican Enterprises Inc.
|
| Issue: | Convertible promissory note, convertible note
|
| Amount: | $263,000
|
| Warrants: | No
|
| Stock symbol: | OTCBB: MDCN
|
| Market capitalization: | $2.24 million
|
|
|
| KBM convertible note
|
| Amount: | $43,000
|
| Maturity: | Aug. 28, 2015
|
| Coupon: | 8%
|
| Conversion price: | 42% discount to the average of the three lowest closing bid prices of the stock during the 10-trading-day period preceding conversion
|
| Call: | At 115 to 140
|
| Investor: | KBM Worldwide, Inc.
|
| Pricing date: | Nov. 17
|
| Settlement date: | Nov. 26
|
| Stock price: | $0.25 at close Nov. 14
|
|
|
| Tangiers convertible promissory note
|
| Amount: | $220,000
|
| Maturity: | Nov. 25, 2015
|
| Coupon: | 10%
|
| Conversion price: | 58% of the lowest trading price of the stock during the 10 trading days preceding conversion
|
| Call: | At 135
|
| Investor: | Tangiers Investment Group, LLC
|
| Pricing date: | Nov. 25
|
| Settlement date: | Dec. 9 (for $75,000)
|
| Stock price: | $0.17 at close Nov. 24
|
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