Company plans $3 million similar notes sale with three-year warrants
By Devika Patel
Knoxville, Tenn., March 5 - Heatwurx, Inc. completed a $500,000 third and final tranche of an $850,000 private placement of unsecured promissory notes on Feb. 28, according to an 8-K filed Wednesday with the Securities and Exchange Commission. It also said it plans a similar placement to raise $3 million, which priced on March 1.
The $850,000 deal raised $250,000 on Jan. 6 and $100,000 on Jan. 15. The company had planned to raise up to $1 million in the sale.
The note is due Jan. 6, 2016 and carries a 12% coupon. It may be prepaid. The investors also received 1/3 of a warrant for each $1.00 invested, for a total of 283,329 warrants. The warrants are each exercisable at $3.00 for one year. The strike price is identical to the Jan. 8 closing share price.
Investors included Gus Blass II.
In the March 1 sale, the company will sell a 12% unsecured promissory note, which is due Jan. 6, 2016. It may be prepaid. The investors also received 1/3 of a warrant for each $1.00 invested. The warrants are each exercisable at $3.00 for three years. The strike price is identical to the Jan. 8 closing share price.
The March 1 sale is expected to settle on Dec. 31, 2014.
Proceeds will be used to repay debt and provide working capital.
Based in Greenwood Village, Colo., HeatWurx provides asphalt repair technology.
| Issuer: | Heatwurx, Inc.
|
| Issue: | Unsecured promissory note
|
| Amount: | $3.85 million
|
| Maturity: | Jan. 6, 2016
|
| Coupon: | 12%
|
| Call: | Yes
|
| Warrants: | 1/3 of a warrant for each $1.00 invested
|
| Warrant strike price: | $3.00
|
| Stock symbol: | OTCBB: HUWX
|
| Stock price: | $3.00 at close Jan. 8
|
| Market capitalization: | $20.58 million
|
|
|
| Jan. 6 offering
|
| Amount: | $850,000
|
| Warrant expiration: | One year
|
| Investor: | Gus Blass II
|
| Announcement date: | Jan. 9
|
| Settlement dates: | Jan. 6 (for $250,000), Jan. 15 (for $100,000), Feb. 28 (for $500,000)
|
|
|
| March 1 offering
|
| Amount: | $3 million
|
| Warrant expiration: | Three years
|
| Pricing date: | March 1
|
| Settlement date: | Dec. 31, 2014
|
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