By Laura Lutz
Des Moines, Oct. 4 - Tasker Products Corp. raised $3.45 million from a private placement of senior secured convertible promissory notes, according to an 8-K filing with the Securities and Exchange Commission.
The convertibles mature on Sept. 27, 2010 and bear interest at 6% per year. Interest is payable quarterly.
The notes are convertible at $0.11 per share.
The notes will automatically be converted if the company's stock trades above 200% of the conversion price for 30 consecutive trading days with an average daily volume greater than $300,000.
The investors also received warrants for a number of shares equal to 50% of that investor's principal amount of notes divided by $0.15. The warrants are exercisable at $0.15 for four years.
Proceeds will be used for working capital and general corporate purposes.
Tasker is a chemical company based in Danbury, Conn.
| Issuer: | Tasker Products Corp.
|
| Issue: | Senior secured convertible promissory notes
|
| Amount: | $3.45 million
|
| Maturity: | Sept. 27, 2010
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion price: | $0.11
|
| Warrants: | For 11.5 million shares
|
| Warrant expiration: | Four years
|
| Warrant strike price: | $0.15
|
| Settlement date: | Sept. 28
|
| Stock symbol: | OTCBB: TKER
|
| Stock price: | $0.29 at close Sept. 28
|
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