By Laura Lutz
Des Moines, June 8 - Tasker Products Corp. raised $2 million from a 10% secured convertible promissory note.
The note will be due in two months.
If Tasker raises at last $10 million from a new offering of notes, the principal amount of the note and any accrued interest will be automatically converted into a secured convertible promissory note. The new notes will have terms substantially identical to the terms of the note in the financing, except that they will be convertible into common stock at the lesser of $0.16 per share and 90% of the conversion price of the notes in the financing.
If the financing occurs more than 30 days after June 4, the new note will instead be convertible at the lesser of $0.16 per share and 80% of the conversion price of the notes in the financing.
The note is non-callable.
The investors also received warrants for 1 million shares, exercisable at $0.20 each for four years.
If a new financing is not completed within 30 days of June 4, the noteholder will receive additional warrants for 1 million shares on the same terms.
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: | Secured convertible promissory note
|
| Amount: | $2 million
|
| Maturity: | Two months
|
| Coupon: | 10%
|
| Price: | Par
|
| Yield: | 10%
|
| Conversion price: | Lesser of $0.16 per share and 90% of the conversion price of notes in a future financing if completed within 30 days of June 4; otherwise, lesser of $0.16 per share and 80% of the conversion price of the note in future financing
|
| Call: | Non-callable
|
| Warrants: | For 1 million shares
|
| Warrant expiration: | Four years
|
| Warrant strike price: | $0.20
|
| Settlement date: | June 4
|
| Stock symbol: | OTCBB: TKER
|
| Stock price: | $0.18 at close June 4
|
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