By Devika Patel
Knoxville, Tenn., Dec. 22 - Document Security Systems, Inc. secured a $1 million credit facility with Baum Capital Investments Inc. on Dec. 18, according to an 8-K filed Monday with the Securities and Exchange Commission.
The facility is represented by a secured promissory note, which has a one-year term.
This note will bear interest at a rate of 15%.
If the company's subsidiary, Secuprint Inc., is "profitable," then the interest rate will be reduced to 12%.
Profitable means Secuprint's aggregate cash receipts exceed its aggregate cash expenditures.
In addition, Baum received warrants for 250,000 shares, which are exercisable at an average price of $2.00 per share until Dec. 17, 2013.
Based in Rochester, N.Y., Document Security develops technologies used to detect counterfeit documents and currency.
| Issuer: | Document Security Systems, Inc.
|
| Issue: | Credit facility
|
| Amount: | $1 million
|
| Tenor: | One year
|
| Coupon: | 15% (12% if Secuprint, Inc. is profitable)
|
| Price: | Par
|
| Yield: | 15% (12% if Secuprint, Inc. is profitable)
|
| Warrants: | For 250,000 shares
|
| Warrant expiration: | Dec. 17, 2013
|
| Warrant strike price: | $2.00 (average)
|
| Investor: | Baum Capital Investments Inc.
|
| Settlement date: | Dec. 18
|
| Stock symbol: | Amex: DMC
|
| Stock price: | $2.09 at close Dec. 18
|
| Market capitalization: | $29.7 million
|
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