By Devika Patel
Knoxville, Tenn., March 19 - Homeland Security Capital Corp. arranged a $12.5 million private placement of secured notes, series H preferred shares and a warrant with YA Global Investments, LP on March 13, according to an 8-K filed Wednesday with the Securities and Exchange Commission.
YA bought $6.31 million of the notes and 6,190 preferred shares at $1,000 apiece for $6.19 million.
The preferreds carry a 12% dividend and a conversion price of $0.03. Each share is convertible into 33,334 common shares. The dividends may be converted into common stock at $0.06 per share.
The notes have a 13% coupon and mature on March 13, 2010. Celerity Systems, Inc., Nexus Technologies Group, Inc. and Homeland Security Advisory Services, Inc. have guaranteed the notes.
YA also received a warrant for up to 83,333,333 common shares, exercisable at $0.03 for five years.
Based in Arlington, Va., Homeland Security invests in homeland security companies.
| Issuer: | Homeland Security Capital Corp.
|
| Issue: | Secured notes, series H preferred shares, warrant
|
| Amount: | $12.5 million
|
| Warrants: | For 83,333,333 shares
|
| Warrant expiration: | Five years
|
| Warrant strike price: | $0.03
|
| Investor: | YA Global Investments, LP
|
| Pricing date: | March 13
|
| Stock symbol: | Pink Sheets: HMSG
|
| Stock price: | $0.0004 at close March 18
|
|
|
| Notes
|
| Amount: | $6.31 million
|
| Maturity: | March 13, 2010
|
| Coupon: | 13%
|
| Price: | Par
|
| Yield: | 13%
|
|
|
| Preferreds
|
| Amount: | $6.19 million
|
| Shares: | 6,190
|
| Dividend: | 12%
|
| Price: | Par of $1,000
|
| Conversion price: | $0.03
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
