By Devika Patel
Knoxville, Tenn., April 3 - U.S. Helicopter Corp. announced it took in $2.5 million from a private placement of senior secured convertible debentures and warrants with both of its two strategic investors.
Each investor bought $1.25 million of the securities.
The company sold to one investor a $1.25 million debenture and warrants for up to 2,783,333 common shares.
The debenture is convertible at a price equal to the lesser of $0.30 per share and 80% of the lowest closing bid price of the company's common stock during the 15 days prior to conversion. It carries an 18% coupon and matures on the earlier of Sept. 30 and the closing of the company's next equity financing that grosses at least $5 million.
The second investor bought warrants for 6.95 million common shares.
All warrants are exercisable at $0.01 for five years.
The company is obligated to use about $613,000 of the proceeds from the debenture to pay principal and interest due on a debenture that was issued to the same investor on March 14.
New York-based U.S. Helicopter provides helicopter shuttle service between the Downtown Manhattan Heliport and Kennedy Airport.
| Issuer: | U.S. Helicopter Corp.
|
| Issue: | Senior secured convertible debentures, warrants
|
| Amount: | $2.5 million
|
| Warrants: | For 9,733,333 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.01
|
| Settlement date: | April 3
|
| Stock symbol: | OTCBB: USHP
|
| Stock price: | $0.10 at close April 3
|
|
|
| Debentures
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| Amount: | $1.25 million
|
| Maturity: | The earlier of Sept. 30 and the closing of the company's next equity financing which grosses at least $5 million
|
| Coupon: | 18%
|
| Yield: | 18%
|
| Conversion price: | The lesser of $0.30 per share and 80% of the lowest closing bid price of the company's common stock during the 15 days prior to conversion
|
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