Note converts to common stock at $0.10 per share, a 28.57% discount
By Toni Weeks
San Luis Obispo, Calif., Aug. 28 – Fuel Performance Solutions, Inc. released more details on its recently announced private placement of convertible notes. Benchmark Co., LLC was the agent.
The company sold a $1.15 million principal amount of convertible promissory notes at a discounted price of $1 million.
The 10% note, which is due Feb. 22, 2016, is convertible into common stock at $0.10 per share, a 28.57% discount to the Aug. 25 closing share price of $0.14.
The notes can be redeemed under certain conditions, and the company can force conversion if certain equity conditions are met.
Investors also received warrants for 6,666,667 common shares, which are each exercisable at $0.12 for five years. The strike price is a 14.29% discount of the Aug. 25 closing share price.
The fuel technology company is based in St. Louis.
| Issuer: | Fuel Performance Solutions, Inc.
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| Issue: | Convertible note
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| Amount: | $1.15 million
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| Price: | $1 million
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| Maturity: | Feb. 22, 2016
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| Conversion price: | $0.10
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| Warrants: | Yes
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| Warrant strike price: | $0.12
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| Warrant expiration: | Five years
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| Call: | Yes
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| Agent: | Benchmark Co., LLC
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| Pricing date: | Aug. 22
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| Settlement date: | Aug. 26
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| Stock symbol: | OTCBB: IFUE
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| Stock price: | $0.14 at close Aug. 25
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| Market capitalization: | $26.35 million
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