Debt sold to investors Coventry, Alpha Capital in multiple tranches
By Devika Patel
Knoxville, Tenn., Aug. 11 – iHookup Social, Inc. sold two convertible notes of $27,000 and $17,408 in a private placement with Coventry Enterprises, LLC on July 17 and Aug. 1, according to an 8-K filed Tuesday with the Securities and Exchange Commission. It also arranged to sell $1.5 million of convertible notes to Alpha Capital Anstalt, in which it has already raised $750,000.
The 8% Coventry notes are due in one year and are convertible into common shares at a price equal to 50% of the lowest closing bid price of the stock for the 20 trading days preceding conversion, with a ceiling price of $0.0005.
Alpha Capital also received warrants for 96,153,846 shares. The warrant strike price of $0.00936 is equivalent to 120% of the conversion price of $0.0078.
Palladium Capital Advisors, LLC was the agent for the Alpha Capital placement.
On June 9, the company consolidated its convertible debt, resulting in Coventry Enterprises, LLC becoming the company’s major noteholder. Coventry purchased $240,818 of debt from other convertible note promissory holders, including LG Capital Funding LLC, Union Capital LLC, Jabro Funding Corp. and Carebourn Capital LP. In addition, some of the convertibles were amended to establish a ceiling conversion price of $0.0005 on the notes.
The mobile social media platform is based in Campbell, Calif.
| Issuer: | iHookup Social, Inc.
|
| Issue: | Convertible notes
|
| Amount: | $1,544,408
|
| Announcement date: | Aug. 11
|
| Stock symbol: | OTCBB: HKUP
|
| Stock price: | $0.01 at close on Aug. 10
|
| Market capitalization: | $722,180
|
|
|
| Coventry notes
|
| Amount: | $44,408
|
| Maturity: | One year
|
| Coupon: | 8%
|
| Conversion price: | 50% of the lowest closing bid price of the stock for the 20 trading days preceding conversion, subject to $0.0005 ceiling price
|
| Warrants: | No
|
| Investor: | Coventry Enterprises, LLC
|
| Settlement dates: | July 17 (for $27,000), Aug. 1 (for $17,408)
|
|
|
| Alpha note
|
| Amount: | $1.5 million
|
| Conversion price: | $0.0078
|
| Warrants: | For 96,153,846 shares
|
| Warrant strike price: | $0.00936
|
| Investor: | Alpha Capital Anstalt
|
| Settlement date: | Aug. 5 (for $750,000)
|
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