By Sheri Kasprzak
New York, Sept. 15 - CYOP Systems International, Inc. said it has received an equity line for up to $15 million from Cornell Capital Partners, LP.
Cornell may buy shares of CYOP at 98% of the lowest closing bid price for the five consecutive trading days after notice of a draw.
CYOP may not draw more than $800,000 on the equity line in any five-day trading period.
Newbridge Securities Corp. was the placement agent.
Separately, Cornell bought $650,000 in convertible debentures from CYOP. The 12% debentures mature in one year and are convertible into common shares at $0.055 each.
The debentures are redeemable at a 20% premium.
Cornell received warrants for 15 million shares, exercisable at $0.05 each for three years and warrants for 12.5 million shares, exercisable at $0.06 each for three years.
Based in Beverly Hills, Calif., CYOP is an online gaming software development company.
Equity agreement
| Issuer: | CYOP Systems International, Inc.
|
| Issue: | Standby equity distribution agreement
|
| Amount: | $15 million
|
| Price: | 98% of the lowest closing bid price for the five consecutive trading days after notice of a draw
|
| Warrants: | No
|
| Investor: | Cornell Capital Partners, LP
|
| Placement agent: | Newbridge Securities Corp.
|
| Settlement date: | Sept. 2
|
| Stock price: | $0.03 at close Sept. 2
|
|
|
| Convertible debentures
|
| Issuer: | CYOP Systems International, Inc.
|
| Issue: | Convertible debentures
|
| Amount: | $650,000
|
| Maturity: | One year
|
| Coupon: | 12%
|
| Price: | Par
|
| Yield: | 12%
|
| Conversion price: | $0.055
|
| Call: | Redeemable before maturity at a 20% premium to face value plus interest
|
| Warrants: | For 27.5 million shares
|
| Warrant expiration: | Three years
|
| Warrant strike price: | $0.05 for 15 million shares; $0.06 for 12.5 million shares
|
| Investor: | Cornell Capital Partners, LP
|
| Settlement date: | Sept. 2
|
| Stock price: | $0.03 at close Sept. 2
|
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