Two investors participate in placement which also includes warrants
By Devika Patel
Knoxville, Tenn., Oct. 7 - CNS Response, Inc. arranged a private placement of 9% secured convertible promissory notes on Oct. 1, according to an 8-K filed Thursday with the Securities and Exchange Commission. John Pappajohn, a company director, and SAIL Venture Partners LP were the investors.
The $1.01 million in notes is due on Oct. 1, 2011, and is initially convertible into common shares at $0.30 per share, which represents a 40% discount to $0.50, the Sept. 30 closing share price.
The two investors also received warrants for 1,686,144 common shares, which are each exercisable at $0.30 through Sept. 20, 2017.
Based in Costa Mesa, Calif., CNS Response develops and commercializes new indications of approved drugs and drug candidates.
| Issuer: | CNS Response, Inc.
|
| Issue: | Secured convertible promissory notes
|
| Amount: | $1,011,688
|
| Maturity: | Oct. 1, 2011
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Conversion price: | $0.30
|
| Warrants: | For 1,686,144 shares
|
| Warrant expiration: | Sept. 20, 2017
|
| Warrant strike price: | $0.30
|
| Settlement date: | Oct. 1
|
| Investors: | John Pappajohn and SAIL Venture Partners LP,
|
| Stock symbol: | OTCBB: CNSO
|
| Stock price: | $0.50 at close Sept. 30
|
| Market capitalization: | $28.57 million
|
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