By Sheri Kasprzak
Atlanta, Feb. 11 - Airtrax Inc. said it has wrapped a private placement of convertible promissory notes for $5 million.
The notes mature Aug. 10, 2005 and accrue interest at 6% annually, payable either in stock at the conversion price in effect at maturity, or in cash. The notes are convertible into common shares initially at $1.30 each.
Airtrax may require that the investors convert all or a portion of the notes and may also redeem all or a portion of the notes.
The investors also received class A warrants for 1,923,077 shares and class B warrants for 961,538 shares. The class A warrants are exercisable at $1.85 each for five years, and the class B warrants are exercisable at $2.11 each for five years. The warrants are exercisable upon the conversion of all of the notes.
The investors in the offering included Stonestreet LP, Whalehaven Capital Fund Ltd. and Nite Capital LP.
First Montauk Securities Corp. was the placement agent in the deal.
Based in Hammonton, N.J., Airtrax develops and manufactures a wheel capable of turning in every direction.
Issuer: | Airtrax Inc.
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Issue: | Convertible promissory notes
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Amount: | $5 million
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Maturity: | Aug. 10, 2005
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Coupon: | 6%
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Price: | Par
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Yield: | 6%
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Conversion price: | $1.30
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Call: | Redeemable at the company's discretion
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Placement agent: | First Montauk Securities Corp.
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Investors: | Stonestreet LP, Whalehaven Capital Fund Ltd. and Nite Capital LP
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Settlement date: | Feb. 11
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Stock price: | $2.37 at close Feb. 11
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Class A warrants
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Warrants: | For 1,923,077 shares
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Warrant expiration: | Five years
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Warrant strike price: | $1.85
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Class B warrants
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Warrants: | For 961,538 shares
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Warrant expiration: | Five years
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Warrant strike price: | $2.11
|
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