9.5% convertibles are sold at A$0.015 apiece, accompanied by options
By Devika Patel
Knoxville, Tenn., Oct. 20 - Karmelsonix Ltd. said it completed a private placement of convertible notes. It raised about A$2 million in the deal by issuing the convertibles at A$0.015 apiece.
The note accrues interest at 9.5% and is convertible into shares at A$0.015, a 25% discount to the Oct. 19 closing share price of A$0.02. It may be redeemed at the company's option.
The convertible was accompanied by one six-month option, which is exercisable at A$0.015 after the notes have been converted. When the option has been exercised, a second option will be delivered to investors, which is exercisable at A$0.03 for six months. Upon exercise of the second option, a third six-month option will be delivered, which is exercisable at A$0.04.
The option strike prices are a 25% discount, and 50% and 100% premiums to the Oct. 19 closing share price.
Proceeds will be applied to the ongoing commercial development and rollout of the company's product suite designed for the monitoring and management of asthma and related diseases.
Armadale, Australia-based Karmelsonix makes medical devices.
| Issuer: | Karmelsonix Ltd.
|
| Issue: | Convertible notes
|
| Amount: | A$2 million (approximate)
|
| Coupon: | 9.5%
|
| Price: | Par of A$0.015
|
| Yield: | 9.5%
|
| Conversion price: | A$0.015
|
| Call: | Yes
|
| Options: | Three
|
| Option expiration: | Six months
|
| Option strike price: | A$0.015, A$0.03, A$0.04
|
| Settlement date: | Oct. 20
|
| Stock symbol: | Australia: KSX
|
| Stock price: | A$0.021 at close Oct. 20
|
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