By Devika Patel
Knoxville, Tenn., Aug. 25 - Advanced Growing Systems, Inc. took in $1 million in a private placement of convertible promissory notes on Aug. 20, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company sold the senior secured convertible promissory note to Lamassu Capital Management, LLC along with E warrants for 888,890 common shares, F warrants for 666,666 common shares and G warrants for 444,444 common shares.
The warrants are exercisable until Aug. 20, 2011. The E warrants have an exercise price of $0.375 per share, the F warrants have an exercise price of $0.50 per share and the G warrants have an exercise price of $0.75 per share
The note is due on Aug. 20, 2009. Interest will accrue monthly on the note at a rate of 18% per annum. The interest payments shall be paid in cash in quarterly arrears on the last day of the company's fiscal quarter.
The company may prepay the note, in whole or in part, in minimum increments of $50,000. Further, if the company completes a financing of greater than $250,000, the noteholder may force the company to prepay in cash all or a portion of the money raised in such qualified financing.
Proceeds will be used to increase production, distribution capabilities and capacity at the company's Mississippi fertilizer plant, for working capital and other general corporate purposes.
Advanced Growing Systems is based in Alpharetta, Ga.
| Issuer: | Advanced Growing Systems, Inc.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $1 million
|
| Maturity: | Aug. 20, 2009
|
| Coupon: | 18%
|
| Price: | Par
|
| Yield: | 18%
|
| Warrants: | For 2 million shares
|
| Warrant expiration: | Aug. 20, 2011
|
| Warrant strike price: | $0.375 (for 888,890 shares), $0.50 (for 666,666 shares), $0.75 (for 444,444 shares)
|
| Investor: | Lamassu Capital Management, LLC
|
| Settlement date: | Aug. 20
|
| Stock symbol: | OTCBB: AGWSE
|
| Stock price: | $0.25 at close Aug. 20
|
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