Three-year agreement allows selling stock to Dutchess Opportunity Fund
By Devika Patel
Knoxville, Tenn., Oct. 27 - American Asset Development, Inc. finalized plans for a line of credit with Dutchess Opportunity Fund, II, LP on Oct. 21, according to an 8-K filed Wednesday with the Securities and Exchange Commission. The $10 million agreement was negotiated on Dec. 12 and then postponed due to a delay in reviewing the financial statements filed for the second and third quarter by the company's auditors.
Dutchess will buy company common shares over three-years in tranches of up to 200% of the average daily volume of the common stock for the three trading days preceding the put notice or $250,000.
The purchase price is set at 93% of the lowest daily volume-weighted average price of the stock during the five-consecutive-trading-day period following the drawdown notice.
American Asset Development, formerly Empyrean Holdings, Inc., is a Houston-based diversified holding company that aims to spin off its subsidiaries into publicly traded entities.
| Issuer: | American Asset Development, Inc.
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| Issue: | Equity line of credit
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| Amount: | $10 million
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| Tenor: | Three years
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| Price: | 7% discount
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| Warrants: | No
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| Investor: | Dutchess Opportunity Fund, II, LP
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| Pricing date: | Oct. 21
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| Stock symbol: | OTCBB: EMPY
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| Stock price: | $0.01 at close Oct. 21
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