By Sheri Kasprzak
New York, Aug. 15 - Healthcare Business Services Groups, Inc. wrapped a $2 million private placement of convertible notes.
The 6% notes, purchased by New Millennium Capital Partners II, LLC; AJW Qualified Partners, LLC; AJW Offshore, Ltd.; and AJW Partners, LLC, are due June 27, 2009.
The notes are convertible into common shares at the average of the three lowest trading prices for the 20 trading days before conversion.
The notes may be prepaid without penalty as long as the company's stock trades at or below $0.05 per share.
The investors also came away with warrants for 50 million shares, exercisable at $0.07 each for seven years.
Based in Upland, Calif., Healthcare Business Services provides medical billing services to doctors' offices and hospitals.
| Issuer: | Healthcare Business Services Groups, Inc.
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| Issue: | Convertible notes
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| Amount: | $2 million
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| Maturity: | June 27, 2009
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| Coupon: | 6%
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| Price: | Par
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| Yield: | 6%
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| Conversion price: | The average of the three lowest trading prices for the 20 trading days before conversion
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| Warrants: | For 50 million shares
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| Warrant expiration: | Seven years
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| Warrant strike price: | $0.07
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| Investors: | New Millennium Capital Partners II, LLC; AJW Qualified Partners, LLC; AJW Offshore, Ltd.; and AJW Partners, LLC
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| Settlement date: | June 29
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| Stock symbol: | OTCBB: HBSV
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| Stock price: | $0.04 at close June 29
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