By Sheri Kasprzak
New York, July 25 - American Mold Guard, Inc. sealed a $2 million private placement of secured convertible notes.
Calliope Capital Corp. bought the notes, which bear interest at Prime rate plus 200 basis points, with a 9% floor and an 11% ceiling.
The notes are due July 19, 2010 and are convertible into common shares at $1.85 each.
The notes may be prepaid any time at 130% of the principal and interest.
Calliope also funded a $2 million revolving credit facility.
As part of the offering, the investor received warrants for 1,137,010 shares, exercisable at $1.93 each through July 19, 2012.
Based in San Juan Capistrano, Calif., American Mold Guard provides residential mold prevention systems.
| Issuer: | American Mold Guard, Inc.
|
| Issue: | Secured convertible notes
|
| Amount: | $2 million
|
| Maturity: | July 19, 2010
|
| Coupon: | Prime rate plus 200 basis points, 9% floor and 11% ceiling
|
| Call: | May be prepaid at 130% of par plus interest
|
| Warrants: | For 1,137,010 shares
|
| Warrant expiration: | July 19, 2012
|
| Warrant strike price: | $1.93
|
| Investor: | Calliope Capital Corp.
|
| Settlement date: | July 19
|
| Stock symbol: | Nasdaq: AMGIU
|
| Stock price: | $13.25 at close July 19
|
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