Note due April 19, 2016 was sold to Typenex Co-Investment for $986,990
By Devika Patel
Knoxville, Tenn., Oct. 22 – Hydrocarb Energy Corp. sold a $1.73 million convertible secured promissory note to Typenex Co-Investment, LLC on Oct. 19, according to an 8-K filed Thursday with the Securities and Exchange Commission. The company raised $986,990, net of a $475,000 original issuance discount, $5,000 of legal fees and $263,011 raised through the forgiveness of debt under a $350,000 secured convertible promissory note.
The 0% note is due April 19, 2016 and converts into common stock at a price equal to 80% of the five lowest closing bid prices of the stock during the 20 trading days preceding conversion.
Proceeds will be used to pay off debt owed under the company’s $575,464 variable rate convertible note held by KBM Worldwide, Inc., to pay debt owed under the company’s $373,333 variable rate convertible note held by JMJ Financial and for other general corporate purposes.
The petroleum exploration company is based in Houston.
| Issuer: | Hydrocarb Energy Corp.
|
| Issue: | Convertible secured promissory note
|
| Amount: | $1.73 million
|
| Maturity: | April 19, 2016
|
| Price: | $986,990
|
| Coupon: | 0%
|
| Conversion price: | 80% of the five lowest closing bid prices of the stock during the 20 trading days preceding conversion
|
| Warrants: | No
|
| Investor: | Typenex Co-Investment, LLC
|
| Settlement date: | Oct. 19
|
| Stock symbol: | OTCBB: HECC
|
| Stock price: | $1.12 at close Oct. 16
|
| Market capitalization: | $29.75 million
|
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